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U.S. President Donald Trump announced a finalized trade agreement with China, pending mutual approval from both him and Chinese President Xi Jinping. In a post on Truth Social, Trump stated, "OUR DEAL WITH CHINA IS DONE," emphasizing the "excellent" relationship between the two leaders.
The deal follows two days of high-level negotiations in London and builds upon a prior framework set in Geneva aimed at de-escalating retaliatory tariffs. As part of the agreement, the U.S. will gain access to China's rare earth minerals and magnets—resources critical for electronics and defense—while Chinese students will continue to have access to American universities.
Trump revealed that the U.S. will impose a 55% tariff on Chinese imports, while China will maintain a 10% duty on American goods. This represents a formal shift from the previous tit-for-tat measures that had raised tariffs to unprecedented triple-digit levels on both sides.
U.S. Commerce Secretary Howard Lutnick praised the framework for adding "meat on the bones" to the Geneva discussions, which had faltered due to China’s restrictions on critical mineral exports. The U.S. had responded with new export controls targeting semiconductor design software, aircraft, and other advanced technologies.
The announcement brings cautious optimism to global markets, though concerns remain over Trump's unpredictable trade strategies and the long-term impact on global supply chains. Businesses hit by disrupted shipments and rising costs are watching closely for signs of regulatory stability. The deal signals a potential thaw in U.S.-China trade tensions, but its final impact hinges on formal ratification and consistent enforcement.
