President Donald Trump announced a finalized trade agreement with China following two days of negotiations in London. The deal, pending final approval from both leaders, includes the United States imposing a 55% tariff on Chinese imports, combining existing and new duties. In return, China will reduce its tariffs on U.S. goods to 10% and commit to supplying critical materials like rare earth magnets to the U.S. Additionally, the agreement allows Chinese students continued access to American educational institutions.
Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent confirmed the structural details of the deal, emphasizing its potential to stabilize trade relations between the two nations. However, markets reacted cautiously due to the limited scope of the agreement and the need for further negotiations. The World Bank noted ongoing trade tensions as a global economic risk.
While the agreement marks a step toward rebalancing U.S.-China economic relations, fundamental differences remain unresolved. Both sides are working towards a comprehensive deal by the August 10 deadline, with diplomats stressing the importance of a balanced and enforceable path forward.
