Trump Seals US-China Trade Pact During London Discussions

Clear Facts

• President Donald Trump announced that a new U.S.-China trade agreement is finalized, pending approval from both nations’ leaders.
• The agreement addresses disputes over rare earth elements and maintains a 55% tariff rate on Chinese imports to the U.S.
• China will continue to supply rare earth elements, crucial for various technologies, under the terms of the new deal.

In a significant development, President Donald Trump has declared that the United States and China have reached a new trade agreement. This announcement follows negotiations in London earlier this week, which aimed to restore the previous framework that had collapsed in May.

The renewed agreement addresses critical issues, particularly concerning rare earth elements, which are vital for advanced technologies and weapon systems.

Trump took to social media to share the news, stating, “OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA.”

This deal comes after China had imposed export controls on several rare earth elements in April, causing alarm among policymakers and industry leaders due to potential supply chain disruptions.

From 2020 to 2023, China accounted for 70% of rare earth metal imports to the U.S., highlighting the importance of these negotiations.

Under the new terms, the U.S. will maintain a 55% tariff rate on Chinese imports, while China will impose a 10% tariff on American goods. This agreement follows a notable 35% decline in Chinese exports to the U.S. in May, reaching a five-year low.

In an additional development, Trump’s previous order suspending the entry of foreign nationals into Harvard University had raised concerns among educational institutions.

However, Trump reassured that American universities could continue accepting Chinese international students, stating, “WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!).”

This announcement follows the arrest of a second Chinese national affiliated with the University of Michigan for allegedly smuggling biomaterials and providing false information to officials.

Further insights into the London agreement are anticipated when Treasury Secretary Scott Bessent, a key participant in the negotiations, testifies before the House Ways and Means Committee.

Additionally, a federal appeals court has allowed the Trump administration to continue enforcing its “Liberation Day” tariffs on imports from most countries, pending further legal proceedings.

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