Former US President Donald Trump on Wednesday announced that a new trade deal with China has been finalized, pending final approval from both him and Chinese President Xi Jinping. The breakthrough comes after two days of high-stakes negotiations held in London, marking a potential turning point in the ongoing trade standoff between the world’s two largest economies.
“Our deal with China is done, subject to final approval with President Xi and me,” Trump stated on his social media platform, Truth Social.
According to Trump, the agreement includes key provisions related to tariffs and critical materials. “We are getting a total of 55 per cent tariffs, China is getting 10 per cent,” he claimed, calling the relationship with China “excellent” and expressing optimism that the deal would benefit both sides. “This would be a great WIN for both countries!!!” he added.
A significant part of the London talks centred on restoring the supply chain of rare earth elements — essential for manufacturing semiconductors, electronics, electric vehicles, and military equipment. Under the agreement, China has committed to supplying “full magnets, and any necessary rare earths… up front.”
In return, the US has agreed to uphold previously negotiated terms, including allowing Chinese students to continue studying at American universities — a move Trump endorsed, saying it “has always been good with me.”
US Commerce Secretary Howard Lutnick confirmed the development, stating that the talks had led to the resolution of restrictions involving rare earth minerals and magnets. “We have reached a framework to implement the Geneva consensus,” Lutnick told reporters, adding that the formal rollout would follow presidential approvals.
The agreement comes just days after China approved several export license applications for rare earth-related materials, citing rising global demand from sectors like robotics and new energy vehicles.
Experts say China’s willingness to ease export restrictions suggests it received substantial trade concessions in return — a balancing act in a geopolitically tense environment, especially amid US restrictions on Chinese access to advanced technologies like AI-linked semiconductors.
If implemented, the deal could reset strained bilateral trade ties and stabilize global supply chains, particularly in the tech and manufacturing sectors.
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