The landscape of US tariffs on China is complex and constantly evolving, with a mix of agreements, new impositions, and ongoing negotiations. Here's a summary of the latest updates:

Current Tariff Status and Deals:

• Average US Tariff Rate: The average US tariff on Chinese goods currently stands at 51.1%, while China's duties on US exports average 32.6%.

• June 2025 Trade Deal: In June 2025, the US and China reached a new trade deal aimed at de-escalating tensions.
  US Tariffs on China: The US agreed to reduce its tariffs on Chinese imports to a flat rate of 55%, down from a previous high of 145%. This 55% includes a 10% base tariff (currently under legal challenge), a 25% tariff from Trump's first term, and an additional 20% related to alleged fentanyl trafficking.
  China Tariffs on US: In exchange, China agreed to lower its tariffs on American goods to 10%, a significant cut from its previous 125%.
  Strategic Minerals: A key aspect of this deal is China's commitment to expedite rare-earth export permits, which are crucial for US tech and defense industries. In return, the US will rescind some technology and visa restrictions.
  Chinese Students: The deal also includes a concession allowing Chinese students to continue attending US universities.
  Limited Scope: While this agreement has eased some immediate tensions, analysts note that it primarily rolls back recent escalations rather than addressing long-standing trade imbalances or non-market behavior. Deeper disagreements between the two sides remain.

• August 1, 2025 Deadline: While many countries have been granted a delay for new reciprocal tariffs until August 1, 2025, China was not given this delay. Instead, China has until August 12, 2025, to reach a further agreement with the US, or it faces the possibility of additional import restrictions. This suggests that despite the June deal, the US is still applying pressure.

Key Issues and Factors:

• Strategic Minerals: Minerals like rare earths, cobalt, and lithium are at the heart of the trade dynamic. The US relies heavily on China for rare earth imports (around 70%), giving Beijing significant leverage. China has previously weaponized this dominance by placing strategic minerals under export control, which reportedly influenced the US to agree to temporary tariff rollbacks.

• Fentanyl Crisis: A portion of the US tariffs on China (20%) is specifically tied to alleged fentanyl trafficking, indicating a broader approach to trade policy that incorporates national security and public health concerns.

• "Anti-American BRICS Policies": The U.S. has generally warned that any country aligning with "Anti-American BRICS policies" may face an additional 10% tariff, though it's not clear if this directly applies to China given its current tariff structure.

Affected Companies and Sectors:

• US Tech & Defense Industries: These sectors stand to benefit from eased rare-earth access, which is crucial for their supply chains.

• Chinese Rare-Earth Miners/Exporters: These companies could see a partial market recovery due to the agreement on rare earth exports.

• US Services (Travel, Education): Increased Chinese engagement in these areas is anticipated as some tech tensions cool.

• Global Automakers: In the past, Chinese export controls on rare earth magnets forced global automakers to pause production, highlighting the interconnectedness of supply chains.

• Household Appliances: As of June 23, 2025, several household appliances containing steel are subject to an additional 50% tariff when imported into the US, levied on the steel content. This impacts companies involved in these product lines.

The situation remains fluid, and analysts anticipate further negotiations and potentially industry-specific exemptions in the coming months, even with the August 12 deadline approaching for China. The broader goal for the US appears to be addressing its trade deficit and what it perceives as unfair trade practices, while China continues to protect its strategic interests.