The United States and China have reached a tentative agreement on a new trade framework following talks in London, according to President Donald Trump.
The proposed deal, pending final approval by both Trump and Chinese President Xi Jinping, includes mutual tariff adjustments and renewed cooperation on key resources. Under the terms outlined by Trump, the U.S. will impose a 55 percent tariff on Chinese goods, while China will set a 10 percent tariff on U.S. exports. In return, China has agreed to supply rare earth elements, including full magnets, which are essential for advanced manufacturing and defense technologies.
The talks follow weeks of stalled negotiations and earlier disagreements over tariff reductions. A previous deal saw the U.S. lower tariffs from 145 percent to 30 percent, while China dropped its rate from 125 percent to 10 percent. However, Trump accused Beijing of violating that agreement earlier this month, though details were not disclosed.
High-level U.S. officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, participated in the latest round of talks with their Chinese counterparts.
The deal also appears to address student visa policy, with the U.S. signaling that it will continue to allow Chinese students to study at American colleges and universities.
This tentative agreement comes ahead of the July 8 expiration of a 90-day tariff reprieve Trump announced in April, which had temporarily lowered import duties across the board. While the U.S. previously secured a separate agreement with the United Kingdom, this marks the first progress in negotiations with China since the imposition of tariffs tied to fentanyl-related trade concerns.
Further details on implementation and enforcement are expected if both leaders formally sign off.
Source: The Hill