Trump Announces Trade Agreement with China
On Wednesday morning, President Donald Trump revealed that the United States has finalized a contract with China after extensive trade talks held in London.
“Our contract with China will be subject to final approval from President Xi and me,” Trump stated on Truth Social. He emphasized, “The complete magnets and rare earths needed will be supplied in advance from China.”
He continued, noting the agreement involves providing Chinese students access to U.S. universities, a situation he described as beneficial. “We get a total of 55% tariffs, while China is getting 10%. The relationship is great! However, we need to be cautious about this issue!”
“President Xi and I aim to collaborate closely to enhance trade opportunities. This will be a significant breakthrough for both nations!!”
This announcement follows Commerce Secretary Howard Lutnick’s declaration on Tuesday that a framework for implementing the Geneva consensus had been established.
The two sides have also agreed to cut tariffs on a majority of U.S. goods from an astonishing 125% down to 10%. This trade ceasefire is intended to serve as a foundation for more detailed negotiations that are expected to continue through August 10th.
Trump previously referenced this 55% tariff rate, indicating that it relates to the baseline rate of 10% he initially imposed on various countries. He also pointed to a 20% rate specific to China due to issues related to the fentanyl crisis, along with nearly 25% tariffs established under Section 301.
Meanwhile, progress on the Geneva ceasefire has been hindered by mutual accusations of violations. The U.S. has argued that China is lagging in permitting the export of essential rare earth materials, prompting the Trump administration to tighten controls over certain chemicals and cancel visas for some Chinese students.
Lutnick noted that the new deal would allow China to relax restrictions on rare earth minerals in a more balanced manner.
China’s Deputy Commerce Minister, Li Chenggang, confirmed that an agreement had indeed been finalized during talks in London.
The discussions lasted nearly two days, focusing on the issues surrounding the Geneva Consensus, which had been suspended due to allegations of non-compliance from both countries.
Trump also mentioned that he had a “very good” conversation with Xi last week, especially after trade discussions had stalled. He recalled that Xi described the trading environment as “very tough and very difficult.”
