Trump announces a trade agreement with China
Beijing has yet to comment on the pact.
London / BarcelonaNothing less than expected. After nearly three days of talks, the United States and China have agreed to cut tariffs. The agreement, still pending approval by the American and Chinese presidents, was announced by Trump himself, who provided the first details: the United States will apply 55% tariffs on Chinese products; Beijing, for its part, will apply 10% on American products.
Negotiations between the two powers conclude after three days of talks in London, which aimed to stem the escalating tensions that threaten to shake the global industry and reach an agreement that would restore a degree of stability to international trade. Thus, both delegations have reached an agreement that includes, among other measures, the elimination of Chinese restrictions on the export of so-called rare earths and the partial withdrawal of restrictions imposed by the US on key technological products for China, such as microprocessors.
Despite the US president's announcement, Beijing has not yet made any statement on the agreement, of which no details have been revealed.
Trump made the announcement on his social network, Truth Social: "Our agreement with China is closed, subject to final approval by President Xi and me. China will supply magnets and the necessary rare earths in advance. Likewise, we will provide China with what was agreed, including access for Chinese students (good!). They apply tariffs of 55% to us, while China receives 10%. The relationship is excellent!
Trump later wrote a second message: "President Xi and I will work closely together to open China to American trade. It will be a huge WIN for both countries!!!"
According to the The New York TimesThese percentages Trump has given do not represent any changes to tariffs, and the 55% the US president is referring to adds a 30% tariff he imposed on Chinese products in recent months to a 25% tariff he imposed on some Chinese products during his first term. In reality, some tariffs on Chinese products are lower, and many are significantly higher.
Disagreement and tension
Tensions between the two countries escalated when the US deemed China to be in breach of the Geneva commitment to open the rare earth market. In retaliation, Washington restricted the sale of chip design software and announced it would revoke visas for Chinese students. Head of the US National Economic Council
The location of the talks over the past three days – the historic Lancaster House in central London – did not hide the geostrategic background of the conflict: control of technological supply chains. China retains a near-monopoly position in the extraction and refining of rare earths, essential for around 90% of global business. Following the phone call between Trump and Xi last week, the US president announced that China would restore the flow of rare earths, although he did not specify timetables or volumes. Trade tensions soared in April when Beijing imposed Trump's tariffs. Chinese rare earth exports plummeted, affecting multiple industries globally. In addition, Washington banned the sale of semiconductor design software and warned US companies not to buy artificial intelligence chips from Huawei, in the spirit of Geneva. The agreement reached a few days ago in Switzerland had temporarily suspended the most damaging tariffs and opened a 90-day window to negotiate a broader agreement. However, Chinese exports to the US are still subject to a stipulation.
