U.S. and China ‍Reach Trade Deal, Resolving Trade War Tensions

⁢ Updated June 12, 2025
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President Donald Trump‍ announced Wednesday a new trade deal with China, expressing satisfaction⁤ with the agreement aimed at easing tensions in the ongoing U.S.-China trade war. the agreement, reached after negotiations in London, establishes a framework where china will supply rare earths and⁣ magnets to U.S. companies.In return, the United States will maintain its⁤ current policy regarding visas for Chinese students.

Trump confirmed⁤ the deal on his Truth Social platform, stating it ⁤was “done, subject to final approval from President Xi and me.” The ⁣agreement addresses critical mineral exports, a key point of contention between the two nations. This U.S.-China trade deal aims to de-escalate trade ⁢tensions.

The U.S. will maintain tariffs ⁣of 55% on‍ Chinese goods, a figure confirmed by Commerce Secretary Howard Lutnick.‍ This rate includes a 10% reciprocal tariff, 20% on goods related to fentanyl concerns, and pre-existing ⁣25% tariffs from Trump’s frist term. China’s tariffs on U.S. imports will ⁣remain at 10%.

Treasury Secretary Scott Bessent clarified that the ⁤agreement does not involve any exchange⁤ of concessions regarding export restrictions on high-end artificial intelligence chips. “There is no quid pro quo⁣ in terms of chips for rare earths,” ⁣Bessent⁤ stated.

“We made a great deal with China. We’re‍ very happy⁢ with it,” Trump told reporters.

The recent negotiations, including a phone call between Trump and Xi, followed earlier discussions in Geneva where a temporary ⁣truce was established. However, that⁣ agreement faltered due to China’s restrictions on critical minerals⁢ exports, leading to further export controls by the U.S.

What’s next

Both sides will now present the framework to their respective presidents for final approval.⁢ The agreement aims to provide stability in trade relations and ensure the supply of critical minerals for U.S. industries.