President Trump announced Wednesday that the U.S. and China have reached a tentative trade agreement following high-level talks in London, signaling a potential reset in economic relations between the two countries. The deal, which Trump said still requires final approval from both himself and Chinese President Xi Jinping, includes significant tariff adjustments and a new arrangement involving rare earth minerals.
In a post on Truth Social, Trump revealed that the U.S. will move forward with a 55 percent tariff on Chinese goods, while China will reciprocate with a 10 percent tariff on U.S. exports. In exchange, Trump said China has agreed to supply the U.S. with “full magnets and any necessary rare earths,” key components in electronics and military equipment.
Trump also noted that part of the agreement includes continuing access for Chinese students to study in U.S. colleges and universities, something he described as “always good with me,” signaling openness on that front despite broader tensions.
The announcement followed a meeting in London between top Trump administration officials and their Chinese counterparts. Representing the U.S. were Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
The new agreement appears to revive stalled negotiations after an earlier deal last month had reduced tariffs on both sides lowering the U.S. rate from 145 percent to 30 percent, and China’s rate on American goods from 125 percent to 10 percent. Talks had recently hit a rough patch, with Trump accusing Beijing of breaching the earlier terms, though he offered no specific examples at the time.
Trump’s latest post portrayed the renewed talks as productive and the relationship with China as “excellent,” despite recent trade tensions. The proposed agreement is expected to be reviewed in the coming days by both governments.