11.06.2025 15:41
A trade agreement has been reached between China and the United States. The texts agreed upon have been submitted for approval by Trump and Xi. According to this agreement, the U.S. will impose a 55% customs duty on products coming from China, while China will impose a 10% customs duty on products coming from the U.S. In statements regarding the agreement, Trump said, "All magnetic components and necessary rare elements will be supplied in advance by China."
US President Donald Trump announced the news that the markets have been waiting for days. In statements made on his Truth Social account, Trump said, "Our agreement with China is complete; it is only subject to my final approval and that of President Xi Jinping."
"RARE ELEMENTS WILL BE SUPPLIED BY CHINA IN ADVANCE"
Trump stated, "All magnetic components and necessary rare elements will be supplied by China in advance. Similarly, we will provide what was agreed upon in the deal to China; this includes allowing Chinese students to use our universities (which has always been positive for me). We are receiving a total of 55% customs duty, while China is at 10%. Our relations are excellent," he said.
AGREEMENT TO LIFT EXPORT RESTRICTIONS
US and Chinese officials announced yesterday that they have agreed on a framework that will restore the trade ceasefire and lift China's export restrictions on rare earth elements. However, according to comments in the US press, there were not many signs in the agreement that the long-standing trade disputes would reach a permanent solution.
After two days of intense negotiations in London, US Secretary of Commerce Howard Lutnick stated to reporters that this framework agreement is a concrete manifestation of the consensus reached last month in Geneva, which aims to alleviate the mutually 'overwhelming' three-digit tariffs. However, the Geneva Agreement was disrupted due to China's ongoing restrictions on the export of critical minerals. This situation led the Trump administration to implement its own export controls that hinder shipments of semiconductor design software, aircraft, and other products to China.
"WE WILL IMPLEMENT THE FRAMEWORK IF APPROVED"
Lutnick said that the agreement reached in London would lift some recent US export restrictions, but he did not provide details as the talks ended around midnight London time. Lutnick stated, "We have agreed on a framework to implement the Geneva consensus and the discussions between the two presidents. Our goal is to meet with President Trump and get his approval, while the other side will meet with President Xi to get his approval. If approved, we will implement the framework."
PARTIES AGREED ON A TRADE FRAMEWORK
Lutnick also stated that the restrictions imposed by China on the export of rare earth elements and magnets to the US would be resolved as a 'core' part of the framework agreement. Lutnick said, "When those rare earth elements did not come, the United States had taken some measures. You can expect these measures to be lifted in a balanced manner." Chinese Deputy Minister of Commerce Li Chenggang also stated that the parties have agreed in principle on a trade framework, which will be presented to the leaders of the US and China.
According to reports in Western media, this framework could prevent the complete breakdown of the Geneva agreement due to mutual export controls. However, it does not make much progress in resolving the differences regarding Trump's unilateral tariffs and the long-standing complaints of the US about China's state-supported, export-oriented economic model. Accordingly, the parties have until August 10 to negotiate a more comprehensive agreement to ease trade tensions; otherwise, tariffs will rise again, increasing from approximately 30% to 145% on the US side and from 10% to 125% on the Chinese side.