The new trade deal between the United States and China, announced by President Trump, signifies a precarious return to square one in their ongoing economic relationship. The agreement stipulates that the U.S. will impose an extraordinary 55% tariff on Chinese goods, while China is going to reciprocate with a mere 10% tariff on U.S. imports . This asymmetry highlights the persistent imbalance in trade negotiations, raising questions about the efficacy of such measures in achieving long-term resolution of trade tensions.
Talks aimed at cooling tensions between the US and China have ended in a "deal", according to US President Donald Trump.
He said China had agreed to supply US companies with magnets and rare earth metals, while the US would walk back its threats to revoke visas of Chinese students.
"Our deal with China is done, subject to final approval from President Xi and me," Trump wrote on his media platform Truth Social.
It continued two days of intense talks in London to resolve conflicts that had emerged since the two sides agreed a truce in May, after a rapid escalation of tariffs had nearly paralysed trade between the world's two largest economies.
It remains unclear whether the truce will hold — or crumble like one struck in May did. Even if the agreement does prove durable, its big accomplishment appears to be merely returning the countries to a status quo from several months ago, before President Trump provoked tensions with China in early April by ramping up tariffs on goods it produces.
As a result of this week’s negotiations, tariffs will stay where they are. Further details are scant, other than the likely rollback of aggressive policies the two countries adopted since May.
Trump in Wednesday’s post also wrote that “full magnets, and any necessary rare earths, will be supplied, up front, by China” as a result of the London talks.
In a follow-up, he wrote, “President XI and I are going to work closely together to open up China to American Trade.”
Lutnick said on CNBC that the takeaway from this week’s negotiations was that “they set up the Geneva truce.”
Beijing was “slow-rolling” its export of rare earths, prompting retaliation from Washington — including a crackdown on visas for Chinese students at U.S. universities, Lutnick said.
Moreover, while the deal promises increased access for Chinese students to U.S. universities and guarantees a supply of rare earth minerals from China, it notably lacks concessions regarding U.S. export restrictions on high-end technology products . Such omissions suggest that underlying issues remain unresolved and may hinder genuine cooperation between the two nations. As both parties present this framework for final approval, skepticism prevails regarding whether this truce can endure amidst competing national interests.
Read more
Mathurin leads Pacers past Thunder in Game 3 (116- 107) Anti-ICE Protests Expand to NYC, Chicago Following LA Curfew
Sara H
Also on site :
- Mark Wright apologises for ‘inappropriate’ post after Air India plane crash
- Wrestling back youth
- Manchester Grand Hyatt San Diego Debuts Fully Renovated Guest Rooms, Available For Summer 2025 Bookings and Beyond