Daniel Torok / The White House / Flickr
The US and China reached a trade deal Wednesday after several days of talks in London, setting tariffs on Chinese imports to the US at 55% and tariffs on US exports to China at 10%. The deal also includes updated policies on student visas for Chinese nationals.
President Donald Trump announced the deal on Truth Social hours after it was struck, stating that it is “subject to final approval with President Xi and me” and calling the relationship between China and the US “excellent.”
“Full magnets, and any necessary rare earths, will be supplied, up front, by China,” he continued. “Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%.”
According to Reuters, a White House official provided a breakdown of the 55% tariff; it is comprised of a baseline 10% “reciprocal” tariff that Trump has imposed on goods from almost every US trading partner, 20% on all Chinese imports related to Trump’s accusations that the country helps bring fentanyl into the US, and 25% levies on Chinese imports that were instituted during Trump’s first administration.
More details of the trade agreement have yet to be disclosed. However, Trump promised on Truth Social that he and Xi will work “closely together to open up China to American Trade.”
“This would be a great WIN for both countries!!!” he added.
Reuters reported that the trade deal follows a preliminary deal struck in May after talks in Geneva, Switzerland. The Geneva agreement had somewhat calmed the ongoing trade war, but conflict escalated again when China curbed critical minerals exports, prompting Trump to also control exports to China.
A call last week between Trump and Xi led to two days of marathon talks and a new agreement in London.
According to Reuters, US Commerce Secretary Howard Lutnick said that the London talks put “meat on the bones” of the Geneva deal, removing restrictions on the Chinese rare earth minerals and magnets exports and lifting some of the US export curtailments.
“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” he said.
Lutnick added that, as Trump said, the President and Xi need to ratify the framework.
