Trump Declares U.S.-China Trade Agreement Finalized Amid Focus on Rare Earths and Tariff Dynamics

According to a recent report from Reuters, U.S. President Donald Trump announced that a trade agreement with China is essentially finalized. This declaration came shortly after negotiators from both nations reached an understanding aimed at revitalizing a delicate trade truce and lifting Chinese restrictions on the export of rare earth minerals and other essential industrial materials.

Trump shared insights about the negotiations via his social media platform, revealing that discussions in London had successfully added substance to an earlier agreement made in Geneva. This prior deal was intended to alleviate the heavy retaliatory tariffs that had escalated dramatically between the two countries.“our deal with China is done, pending final approval from President Xi and me,” he stated on Truth Social. He emphasized that China would supply necessary rare earths upfront while also reiterating commitments regarding educational exchanges for Chinese students in American institutions.

A White House representative clarified that the 55% tariff figure mentioned by Trump includes various existing tariffs: a baseline 10% reciprocal tariff affecting most U.S. trading partners, an additional 20% on all imports from China due to accusations related to opioid trafficking, and pre-existing levies of 25% imposed during Trump’s initial term.

later, Trump expressed optimism about future collaboration with Xi Jinping: “President Xi and I are going to work closely together to enhance American trade opportunities in China—this could be a notable win for both sides!” Though, specifics regarding how this new framework will be executed remain vague.The urgency of these talks stemmed from a recent phone call between Trump and Xi which broke through previous deadlocks following their initial agreement in geneva—a pact that faltered due to China’s ongoing limitations on critical mineral exports. In response, the U.S. governance had implemented export controls affecting semiconductor design software among other goods destined for China.

Commerce Secretary Howard Lutnick noted after discussions concluded late at night London time that they have established a framework aimed at implementing what was agreed upon previously while balancing export restrictions on both sides; however, further details where not disclosed immediately post-meeting.In another briefing session, China’s Vice Commerce minister Li Chenggang confirmed that they too have reached an understanding which will now be presented back home for leadership approval.

Despite these developments, Trump’s fluctuating tariff strategies have created turmoil across global markets—leading to congestion at major ports—and resulted in substantial financial losses for companies grappling with increased costs and reduced sales opportunities. The World Bank recently downgraded its global growth forecast for 2025 by four-tenths of a percentage point due largely to rising tariffs creating uncertainty across economies worldwide.

While this latest U.S.-China deal may prevent further deterioration stemming from conflicting export controls established earlier this year, it does little more than scratch the surface of deeper issues surrounding unilateral tariffs imposed by Trump as well as longstanding grievances over China’s state-driven economic model focused heavily on exports.

Josh Lipsky from the atlantic Council’s GeoEconomics Center remarked on their differing interpretations of agreements made thus far: “They’re back where they started but that’s still better than being completely stalled.” It remains unclear how quickly or effectively either side can move toward finalizing more complete terms set during last month’s Geneva talks—where August 10 was designated as a crucial deadline before potentially severe increases in tariff rates could take effect again.