Washington/Beijing, June 11: Former U.S. President Donald Trump announced that a trade deal with China is “done,” pending final approval from Chinese President Xi Jinping and himself. The announcement followed two days of talks in London aimed at reviving the Geneva trade truce and resolving ongoing disputes between the two economic powers.
Trump stated that China has agreed to resume supplies of rare earth metals and magnets, which are essential for the production of semiconductors, electric vehicles, and defense systems. In exchange, the U.S. will meet its obligations, including permitting Chinese students to study in American universities. Trump added that the U.S. would impose a 55% tariff on Chinese imports, while China would levy 10% on American goods, calling the agreement a “great WIN” for both nations.
U.S. Commerce Secretary Howard Lutnick confirmed that a framework had been agreed upon to implement the Geneva consensus, with final approval expected from both leaders. He said the framework addresses restrictions on rare earths and outlines a path for economic cooperation.
The Geneva truce, reached earlier, had reduced U.S. tariffs from 145% to 30% and China’s from 125% to 10%, but was disrupted when China maintained its export ban on rare earths. The new deal signals a step forward in restoring trade flows and easing tensions.
China recently approved a limited number of rare earth export licenses, citing growing global demand. However, it has not yet resumed exports to countries like India, where industries have faced severe shortages. Analysts believe China likely received additional concessions beyond what Trump disclosed, suggesting the agreement may benefit Beijing more than initially apparent.
Chinese Vice-Premier He Lifeng emphasized China’s preference for dialogue over conflict but said it would not compromise its principles. Meanwhile, China objected to U.S. threats to revoke visas for Chinese students—an issue reportedly addressed in the deal.
The agreement, while promising, remains provisional. Its success depends on whether both sides implement the terms and avoid further disruptions. Analysts caution that while the deal appears positive, full details are yet to emerge, and political tensions could still derail progress. (PTI)
