Trump says agreement with China ‘is done’

(MENAFN) US President Donald Trump declared on social media that a long-awaited trade deal with China is essentially finalized, pending his and Chinese President Xi Jinping’s approval. The agreement follows months of escalating tariffs between the two economic giants, which peaked at 145% by the US and 125% by China after a tariff war that began in April.

After breakthrough talks in Geneva last month, both sides temporarily suspended most new tariffs, though accusations of breaches and stalled negotiations on export controls continued. Trump highlighted key points of the deal, including a US tariff rate of 55% on Chinese goods and a 10% tariff on US goods entering China. He also mentioned China’s commitment to supply rare earth minerals and magnets upfront, essential for high-tech manufacturing, and the continued flow of Chinese students to American universities.

US Commerce Secretary Howard Lutnick confirmed a framework deal was reached during talks in London, with China agreeing to ease restrictions on rare earth exports and the US easing some export bans, though details remain limited. China’s Vice Commerce Minister Li Chenggang echoed that the framework is agreed “in principle.”

The two countries must finalize a broader trade agreement by August 10 to avoid reinstating the steep tariffs imposed earlier this year.

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