US President Donald Trump announced on Wednesday that a trade agreement with China has been reached.
In a post on Truth Social, Trump wrote, “Our deal with China has been finalised, pending final approval from President Xi and myself.” As part of the agreement, China would provide all magnets and any required rare‐earth materials upfront.
He added, “We will be imposing a total of 55% in tariffs, while China will impose 10%. The relationship between our countries is excellent. Thank you for your attention to this matter. In return, the United States will provide what was agreed upon, including allowing Chinese students to study in our colleges and universities, something I’ve always supported.”
Background
Trump’s comments follow the US and China reaching an initial agreement on a new trade framework after two days of high‑level talks in London with top officials from both nations.
Officials confirmed that the framework will now be submitted to Presidents Trump and Xi for formal approval.
This announcement marks a significant step toward reducing trade tensions between the world’s two largest economies, which have intensified over tariffs, technology transfer and access to vital materials.
US Commerce Secretary Howard Lutnick stated that the agreement is likely to resolve long‑standing trade disputes, particularly those concerning rare‑earth minerals and magnets, which are critical for the defence and electronics industries.
Following the most recent summit between the two leaders, additional details on implementation timelines and the full extent of reciprocal commitments will be disclosed.
The earlier Geneva discussions had largely collapsed due to China’s export restrictions on critical minerals. In response, the Trump administration imposed its own export controls, banning the shipment of semiconductor‑design tools, aircraft and other essential products to China.
Previously, Trump announced that he will increase tariffs on steel and aluminium by an additional 25%, bringing the total to 50%. Trump said the move would help protect American workers as he celebrated a “blockbuster” agreement for Japan-based Nippon Steel’s to invest in US Steel.
After announcing the new punitive tariffs from a rally in Pennsylvania, Trump said that it would further secure the country's steel industry and “nobody is going to get around that.”
Following the announcement, Trump in a social media post also informed that the 50% tariffs on steel would also apply to imported aluminium and would take effect on 4 June.
