Trump Declares New US-China Trade Agreement
On Wednesday morning, President Donald Trump announced that a new trade agreement with China, negotiated in London earlier this week, is officially in place.
This development comes after a breakdown in negotiations following a trade ceasefire on May 12. Both nations had accused each other of not upholding the terms of the agreement. According to Trump and other US officials, this new deal aims to revert to previous terms and address ongoing disputes over rare earth elements.
“The contract with China will be finalized pending approval from President Xi and myself. Essential magnets and rare earths will be supplied from China in advance,” Trump stated.
In April, China began implementing export controls on several rare earth elements critical for various technologies, causing concern among lawmakers and industry leaders regarding potential disruptions in the supply chain.
Between 2020 and 2023, communist countries accounted for 70% of the rare earth metal imports into the US. Notably, China possesses around 44 million tons of rare earth materials, while the US only has about 1.9 million tons.
As part of the new agreement, the US will maintain a 55% tariff on Chinese imports, whereas China will enforce a 10% tariff on American goods.
Trade has recently seen a downward trend, with a 35% year-on-year drop in May, marking the lowest exports from China to the US in five years.
Trump’s order on June 5 to suspend foreign student admissions raised concerns for higher education institutions dependent on international students. However, he affirmed that American universities would still be able to accept Chinese students under the new terms.
“This includes Chinese students attending our universities — something I’ve always supported!” he tweeted.
This announcement follows the arrest of two Chinese citizens affiliated with the University of Michigan, who were allegedly involved in smuggling biomaterials into the US and misrepresenting their activities.
Further details regarding the agreement from London will be disclosed by Treasury Secretary Scott Bescent, who participated in the negotiations and is set to testify before the House Ways and Means Committee.
Meanwhile, a federal appeals court recently ruled that the Trump administration can continue to impose tariffs on imports from most countries as it evaluates lower court decisions challenging these tariffs.
