U.S. President Donald Trump announced progress in U.S.-China trade talks after two days of negotiations in London. China has agreed to lift export restrictions on rare earth minerals and magnets critical for U.S. high-tech industries, while the U.S. will allow Chinese students continued access to American universities.
The agreement, pending final approval from Trump and Chinese President Xi Jinping, marks a cautious step forward after months of escalating tariffs and retaliatory measures between the world’s two largest economies. Trump claims that the U.S. will maintain a combined 55% tariff rate on Chinese imports, while China’s tariff on U.S. goods would be set at 10%. However, the U.S. administration clarified that the 55% figure includes existing tariffs from previous rounds of trade measures imposed over the last few years, not a new increase.
The trade war, which saw tariffs on Chinese imports spike to as high as 145% at one point, has disrupted global supply chains, increased costs for U.S. companies, and rattled markets. The recent truce aims to stabilize these tensions, but experts warn the deal remains fragile and could change.
