US-China Trade Deal Agreed: Trump Confirms Landmark Pact

Subtitle: Agreement opens Chinese markets to US firms and students, while high tariffs remain in place amid fragile truce

Trump Declares Trade Deal with China “Done”

Former US President Donald Trump has confirmed that a long-awaited trade deal with China is now “done”, following two days of high-level talks in London earlier this week.

In a post on his Truth Social platform, Trump stated:

“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,”
calling his relationship with Chinese President Xi Jinping “excellent”.

Key Outcomes of the Agreement

The deal includes a range of trade and education-related concessions:

• The US gains access to Chinese rare earth minerals and magnets, a key win for American tech and defence sectors
• In return, Chinese students will be allowed to attend US universities, reversing previous restrictions
• The US will maintain a 55% tariff on Chinese goods
• China will impose a 10% duty on US imports

These measures mark a partial easing of hostilities that had seen tariff levels reach triple digits, harming global supply chains and market confidence.

Trade Framework Reached to Reset Relations

On Tuesday, officials confirmed a new framework agreement designed to put the US-China trade relationship back on track.

US Commerce Secretary Howard Lutnick said the framework “puts meat on the bones” of the Geneva deal, which had previously stalled due to Chinese restrictions on exports of critical minerals.

In retaliation, the Trump administration had introduced export controls targeting China-bound shipments of:

• Semiconductor design software
• Aircraft
• Advanced electronics

This tit-for-tat escalation had brought tensions to a peak, with businesses facing higher costs and disrupted supply chains.

Tariff Tensions Still Loom Large

Despite the apparent progress, many analysts remain cautious:

• The high tariff levels—55% from the US and 10% from China—are still well above pre-trade war norms
• There is lingering uncertainty over implementation, with final approval from both presidents still pending
• Trump’s unpredictable tariff policy has already rattled global markets, damaging business confidence

Economists warn that while this deal may offer short-term relief, longer-term stability will depend on trust and enforcement mechanisms.

How This May Change Global Trading Patterns

If successfully implemented, this agreement could:

• Reopen supply chains critical to sectors like electronics, aviation, and clean tech
• Boost US access to rare earths, reducing reliance on alternative sources
• Strengthen academic ties between the two countries, reversing years of decoupling
• Encourage other nations to renegotiate trade terms, especially those caught in the US-China crossfire

However, the high remaining tariffs may push firms to diversify supply chains or relocate manufacturing to tariff-free regions, further reshaping global trade.

Summary: Deal Done—But Fragile

• US-China trade deal confirmed, pending final approval
• US wins access to Chinese minerals; China regains student access
• Tariffs remain high, raising doubts over long-term impact
• Markets cautious amid volatile policy backdrop
• Global trading strategies may shift in response

This agreement could be the first step towards stabilising US-China trade ties—but sustained progress will require predictability, cooperation, and enforcement.

Sources: (Investing.com, Reuters)