China and America have been at loggerheads. But Trump has some big news to share.
And he revealed these secret talks with China in a bombshell announcement.
Breakthrough in US-China Trade Talks
President Trump announced a significant milestone in US-China trade relations, confirming early Wednesday that a “deal” was finalized after marathon negotiations in London. In a bold, all-caps post on Truth Social, Trump declared, “Our deal with China is done, subject to final approval with President Xi and me.”
The agreement ensures China will supply “full magnets, and any necessary rare earths” upfront, addressing a critical US demand.
In return, the US will provide agreed-upon concessions, including access for Chinese students to American colleges and universities, a policy Trump noted he has always supported. “We are getting a total of 55% tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter!” he added.
The deal builds on the Geneva consensus from May, which reduced US tariffs on most Chinese goods from 145% to 30% and saw China lower its tariffs on US goods from 125% to 10%.
This truce set a deadline of August 10 for a more comprehensive trade agreement, a goal the London talks aimed to advance.
Overcoming Stalled Progress
The path to this agreement was not without hurdles. Implementation of the Geneva truce faltered when both nations accused each other of breaching its terms.
The US criticized China for “slow moves” in exporting rare earth minerals, prompting the Trump administration to tighten restrictions on key chemicals, impose stricter export controls on critical semiconductor design software, and revoke visas for Chinese students.
These measures underscored the tensions that threatened to derail the trade truce.
Commerce Secretary Howard Lutnick, who announced late Tuesday that the US and China had “reached a framework to implement the Geneva consensus,” described the London agreement as putting “meat on the bones” of the earlier truce.
He highlighted that China would ease barriers on rare earth minerals “in a balanced way,” though he provided no further details on the specifics of this commitment.
Lingering Challenges and Future Prospects
China’s Vice Commerce Minister Li Chenggang echoed the optimism, confirming that an agreement was reached in London, pending approval from Trump and President Xi.
The two sides engaged in nearly two days of intense deliberations to resolve the stalled progress of the Geneva consensus, wrapping up late Tuesday.
Trump, reflecting on a recent call with Xi, described the Chinese leader as “very tough, and extremely hard to make a deal with,” but noted their “very good” conversation helped move negotiations forward.
While the London deal signals progress in stabilizing US-China trade relations, it does not resolve the deeper structural differences between the two economic powers.
The agreement focuses on immediate trade issues, such as tariffs and rare earth exports, but leaves broader disputes unaddressed.
As both nations await final approval from their leaders, the deal represents a critical step toward maintaining the trade truce, though its long-term impact remains uncertain.
