President Donald Trump has announced that a new trade agreement between the United States and China has been finalised, pending formal approval by Chinese President Xi Jinping.
The declaration followed two days of high-level discussions in London aimed at restoring a truce in the long-standing trade tensions between the two global powers. Trump, speaking via his social media platform, Truth Social, described the outcome as a “done deal”, with both sides reaching consensus on key trade provisions.
“Full magnets, and any necessary rare earths, will be supplied, up front, by China,” Trump posted. “We are getting a total of 55 per cent tariffs, China is getting 10 per cent. Relationship is excellent!”
Under the terms of the proposed deal, the United States will retain tariffs amounting to 55 per cent on Chinese imports. This includes a base rate of 10 per cent, an additional 20 per cent levy targeting fentanyl-related products, and 25 per cent from previously existing tariffs. In contrast, China has agreed to impose a significantly lower 10 per cent tariff on American goods.
The agreement also includes provisions for immediate Chinese exports of rare earth minerals and magnets resources critical for high-tech industries including aerospace, electronics, and clean energy. In return, the United States will continue to grant access to Chinese students in its universities.
US Commerce Secretary Howard Lutnick described the pact as a significant advancement in the bilateral relationship, saying it “puts meat on the bones” of the Geneva framework agreed earlier this year. “It shows the US and China can still come to the table and negotiate a mutually beneficial arrangement,” Lutnick added.
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Analysts view the agreement as a shift towards more stable trade relations, especially after years of escalating tariffs and geopolitical tensions. While China has yet to issue a formal response, the move signals a potential de-escalation in economic hostilities.
The deal also carries political weight as both nations seek to stabilise their economies amid broader global uncertainties. Trump’s announcement may appeal to trade-focused voters ahead of the upcoming US presidential election, where economic policy remains a key campaign issue.
Observers note, however, that many of the finer details of the agreement remain undisclosed, and the deal’s full impact will only be known once it is implemented and ratified by both leaders.
If confirmed, the pact could mark the most significant breakthrough in US–China economic relations.
