US China trade deal
US-China Trade Deal: Key Developments
On June 11, 2025, US President Donald Trump announced that a trade deal with China is "done, subject to final approval" with President Xi Jinping. The agreement was reached after two days of talks in London between the two countries.
Key Provisions of the Agreement
- The US will collect 55% tariffs on Chinese imports, while China will collect 10% tariffs on US imports.
- China has committed to supplying rare earth minerals and magnets to the US, with full supplies to be provided up front.
- Chinese students will continue to have access to American colleges and universities.
Previous Developments
- In May, the two countries announced a 90-day pause on most tariffs following talks in Geneva.
- The World Bank lowered its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, citing ongoing uncertainty around trade.
- Asian stock markets rose on hopes of a de-escalation in the trade tensions.
Reactions
- US Commerce Secretary Howard Lutnick said that American concerns over China's restrictions on exports of rare earths were resolved, and that the measures taken by the US would be reversed "in a balanced way."
- Chinese Vice Commerce Minister Li Chenggang called the talks "professional, rational, in-depth and candid."
Next Steps
- The agreement will now be presented to Trump and Xi for final approval.
- Once approved, the two countries will work to implement the agreement.
The agreement reached on June 11, 2025, includes key provisions such as tariffs, rare earth mineral supplies, and student access.
