#TrumpTariffs 🇺🇸 U.S.–China Trade “Framework Deal”

55% U.S. Tariffs on China: Under a new deal—building on agreements reached in Geneva and London—the U.S. will impose 55% tariffs on Chinese imports, a mix of existing duties and new measures. China will keep its tariffs at 10% .

Rare-Earth Minerals Inclusion: China has pledged to resume exporting critical rare-earth minerals to U.S. industries as part of the accord .

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🔄 “Liberation Day” & Reciprocal Tariffs

April 2 White House Plan: The so-called “Liberation Day” tariffs were introduced, including a baseline 10% global tariff and steep tariffs (up to 50%) on specific goods (e.g. autos, steel, aluminum) to counteract fentanyl trafficking and protect U.S. industries .

Broad Sweep: These tariffs applied to imports from Canada, Mexico, China, the EU, and other nations, raising the overall U.S. average tariff rate from ~2.5% to around 15–27%, the highest in over a century .

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🏛️ Legal Status & Court Rulings

Appeals Court Decision (June 11): The U.S. Court of Appeals allowed the “Liberation Day” tariffs to remain in effect during ongoing judicial review, with oral arguments scheduled for July 31 .

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🚧 Domestic & Global Impact

Economic Effects: The Penn Wharton Budget Model projects long-term losses of ~6% of GDP and ~5% of household wages, with middle-income households facing lifetime reductions of ~$22,000 .

Industry Pushback: Domestic manufacturers, especially in steel and autos, are struggling with rising input costs and supply-chain disruptions, prompting calls for exemptions .

Global Retaliation: Canada, Mexico, and China have responded with counter-tariffs. The U.K. and EU face steep duties (25% on cars, steel, aluminum), dealing a sharp blow to their exports .

Cultivating Certainty: Some sectors are cautiously welcoming clarity on tariff levels, though details remain opaque. Retailers warn of inevitable consumer price increases .

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🔮 What’s Next?

Deadline Approaching: The July 8–9 “Liberation Day” deadline looms—