- Trump confirms a new U.S.-China trade deal with 55% U.S. tariffs, 10% Chinese tariffs.
- China agrees to supply rare earths; student visa access remains in place.
- Final approval pending from both leaders, with a broader deal deadline set for August 10.
U.S. President Donald Trump announced that a new trade agreement with China is “done,” pending final approval from Chinese President Xi Jinping. The deal follows two days of intense negotiations in London and aims to revive a fragile trade truce originally struck in Geneva last month. One of the major takeaways: the U.S. will impose a combined 55% tariff rate on Chinese imports, while China will levy 10% on U.S. goods.
Rare Earths and Student Visas Back in Focus
As part of the agreement, China has reportedly committed to supplying rare earth minerals and magnets — vital materials for the tech and defense industries — “up front.” Trump also mentioned the continued allowance of Chinese students in U.S. universities, calling it a positive aspect of the deal. While China’s Ministry of Commerce has yet to comment, U.S. officials emphasized that the tariff breakdown includes Trump’s existing 25% China tariff, a 20% penalty tied to fentanyl-related accusations, and a 10% “reciprocal” levy on most U.S. trade partners.
Framework Agreement Still Needs Final Sign-Off
Commerce Secretary Howard Lutnick stated that both sides reached a “framework” to revive the Geneva consensus and ease retaliatory export controls, especially concerning semiconductors and other critical technologies. Chinese Vice Commerce Minister Li Chenggang confirmed that a trade framework has been agreed upon “in principle” and will be presented to both governments for final approval. No implementation timeline has been confirmed.
Trade Jitters Remain Despite Breakthrough
While the agreement may keep the Geneva truce alive, analysts caution that the deal doesn’t resolve core issues like unilateral tariffs or China’s state-led economic policies. With the World Bank already cutting its global growth forecast, and trade uncertainty lingering, many experts believe the U.S. and China are merely “back to square one.” A more comprehensive agreement is still under negotiation, with an August 10 deadline looming.
