On Wednesday, US President Donald Trump lauded relations with China as “excellent,” announcing that the two global powers had reached an agreement after two days of discussions aimed at maintaining a truce in their impactful trade war.
Trump stated on his Truth Social platform that China would supply critical rare earth minerals and magnets—essential components for American industries—while Washington would permit Chinese students to continue their studies in US universities. His post came just hours after senior US and Chinese negotiators declared a “framework” agreement late Tuesday, following two days of intensive talks in London.
“Our deal with China is done,” Trump wrote, further clarifying that the agreement was still “subject to final approval with President Xi (Jinping) and me.” In a subsequent post, he added, “President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!”
Despite Trump’s recent pronouncements, US stock markets displayed muted enthusiasm, with the broad-based S&P 500 and the Dow remaining flat, while the tech-heavy Nasdaq saw a modest uptick in morning trading.
‘Candid’ Discussions
The two nations had previously agreed to reduce their reciprocal, triple-digit tariffs during talks in Geneva last month, but tensions re-emerged after Trump accused China of breaching the accord. Washington had expressed concern over decelerated supplies of rare earths after Beijing, in early April, mandated domestic exporters to obtain a license—a move widely interpreted as a counter to US tariffs. Rare earths are indispensable in a wide array of products, from electric vehicles and hard drives to wind turbines and missiles.
US Commerce Secretary Howard Lutnick stated in London on Tuesday that US measures imposed when rare earths “were not coming” would likely be eased once Beijing proceeds with more license approvals. In his Truth Social post, Trump affirmed that China would provide “full magnets, and any necessary rare earths… up front.”
Washington had previously irked Beijing by pledging to revoke the visas of Chinese students—a substantial revenue stream for US universities. On Wednesday, Trump confirmed: “We will provide to China what was agreed to, including Chinese students using our colleges and universities.”
The US president also indicated that under the agreement, the United States would levy 55% tariffs on Chinese goods—a combination of his 30% additional duties and the approximate average of pre-existing tariffs, according to a White House official. He added that Beijing would impose 10% duties on US goods. These rates mirror those previously agreed upon in the truce, which saw US tariffs decrease from 145% and those applied by China from 125%.
In a readout of the talks released Wednesday by Chinese state media, Vice Premier He Lifeng, who led Beijing’s delegation in London, underscored the necessity for both sides to enhance cooperation in future dialogues. According to state broadcaster CCTV, He Lifeng stated, “As a next step, the two sides should… continuously enhance consensus, reduce misunderstandings and strengthen cooperation.” Speaking to reporters in London, China International Trade Representative Li Chenggang commented: “Our communication has been very professional, rational, in-depth and candid.”
