U.S.-China Trade Talks Leave Tariffs Unchanged Amid Supply Chain Risks

President Donald Trump plans to send letters to trading partners soon to set unilateral tariff rates ahead of a July 9 deadline, signaling a cautious approach to trade negotiations. Commerce Secretary Howard Lutnick confirmed that U.S. tariffs on Chinese imports will remain unchanged at 55%, combining a 30% blanket rate with an additional 25% on specific products, while China’s tariffs on U.S. goods stay at 10%. Despite recent talks in London and Geneva leading to a temporary truce, unresolved structural issues between the U.S. and China—such as intellectual property rights, technology transfers, and market access—continue to fuel tensions and market volatility, as noted by trade expert Gene Sperling. The tentative U.S.-China trade deal awaits final approval from Trump and Chinese President Xi Jinping, but supply chain uncertainties persist due to China’s issuance of only temporary six-month licenses for critical rare earth materials. Furthermore, the U.S.-China agreement excludes other nations like Canada and the EU, potentially creating economic disadvantages for those allies. Overall, the extended timeline and persistent issues are expected to keep trade-related price pressures elevated, influencing Federal Reserve policy and corporate earnings outlooks into the second half of 2025.