On Wednesday, U.S. President Donald Trump announced a fresh trade agreement with China, which, although still awaiting final approval from both leaders, has been hailed as a "major victory" by the Republican leader. In a series of posts on his social media platform, Truth Social, Trump disclosed that the United States will enforce a 55% tariff on Chinese products, while China will maintain a 10% duty on American goods.
"Our deal with China is finalized, pending the final nod from President Xi and myself. China will provide us with complete magnets and any necessary rare earth minerals in advance. In return, we will furnish China with what was agreed upon, including allowing Chinese students to attend our colleges and universities (something I have always supported)," Trump wrote. "We secure a total of 55% in tariffs, China gets 10%. The relationship is fantastic! Thank you for your attention to this matter," he concluded.
Key Elements: Rare Earths, Trade, and Visas
A central aspect of the agreement is China's commitment to supply critical minerals, such as rare earth magnets, which are essential for technological and military industries. This provision aims to ensure U.S. access to strategic materials that Beijing had previously restricted as a pressure tactic. Trump particularly welcomed China's willingness to facilitate this supply.
The agreement also makes a notable gesture towards the academic community: the U.S. administration will authorize visas for Chinese students enrolled in American universities. This move eases one of the restrictions that had strained bilateral relations in recent years and addresses one of Beijing's most critical concerns.
"In addition to the report on China, President Xi and I will closely work to open China to U.S. trade. This would be a significant win for both nations," Trump added in another post.
Background: Tensions, Tariffs, and Diplomacy
The negotiations leading to this understanding were conducted over two days in London, following a "very positive" conversation between Trump and his Chinese counterpart Xi Jinping last week. Both delegations reached a preliminary framework for cooperation, which, according to China's Vice Minister of Commerce, Li Chenggang, should enhance trust between China and the United States.
"Both parties will present a report to their respective leaders on the discussions held at the meeting, as well as on the framework reached in Geneva. We hope that the progress made at this London meeting will foster greater trust between China and the United States," Li explained, as reported by international media.
The core topics of the discussions were rare earth exports, semiconductors, and student visas, three strategic pillars in the current technological and educational competition between the two powers. The current agreement alters the tariff framework agreed upon in Geneva the previous month, when the U.S. had pledged to reduce its rates from 145% to 30% and China from 125% to 10%. In this new phase, Trump announces an increase in the U.S. tariff to 55%, claiming it is part of a more advantageous strategy.
Previous Challenges and Future Prospects
The trade war between the two countries had intensified due to mutual restrictions. The White House had suspended key exports to China, such as advanced semiconductors, jet engines, and certain chemicals, while Beijing limited access to chip design software and warned about revoking academic visas.
Despite this backdrop, the new agreement represents a step towards normalizing relations, though the final ratification by both presidents is still pending. From the Department of Commerce, Secretary Howard Lutnick expressed optimism. "The commercial framework and implementation plan resulting from the agreement should resolve restrictions on rare earths," he anticipated.
Although many details of the deal still need official confirmation, Trump already considers the new trade framework with China a diplomatic achievement that marks a new chapter in bilateral economic relations.
FAQs on the U.S.-China Trade Agreement
What are the main components of the new trade agreement between the U.S. and China?
The agreement focuses on China's supply of rare earth minerals, new trade tariffs, and the authorization of visas for Chinese students attending U.S. universities.
How will the new tariff structure affect trade between the U.S. and China?
The U.S. will impose a 55% tariff on Chinese goods, while China will maintain a 10% tariff on American products, aiming to balance trade relations.
What impact does the agreement have on academic exchanges between the U.S. and China?
The agreement includes provisions to ease visa restrictions for Chinese students, thereby enhancing academic exchanges and reducing one of the tensions in bilateral relations.