Trump Announces “Done Deal” with China – No More Trade War Drama
In a move that might finally calm the raging trade storm, President Trump tweeted on Truth Social that the U.S. and China have reached a “done deal.” The agreement, freshly sealed after two days of talks in London, covers every last detail of a long‑standing brawl: from rare‑earth supplies to college applications for Chinese students.
Key points of the bargain
- Rare Earths? China will ship up front full magnets and all the needed rare earths required by the U.S. — no more shortages or hitch‑hiking politics.
- Student Exchange? In return, American universities will welcome Chinese students who have been eagerly waiting for a chance to study abroad. Trump chuckles that “Chinese students using our colleges has always been good with me!”
- Tariff Cheat‑Sheet – The Americans get a 55 % tariff hit, while China only faces 10 %. The numbers might not be 50/50, but at least each side has a sense of their “fair share.”
Background: Why This Is a Big Deal
For years, the U.S. and China have accused each other of back‑stabbing over trade agreements. Each side claimed the other had “broken” the deals. Now, after 48 whole hours in London, the two leaders seem to have finally sorted things out. Trump’s post states that the deal is “done, subject to final approval with President Xi and me.” This is the first time the administration’s words have been signed off on the table.
Trump’s Tone (and Punch‑Line)
Trump summed up the situation with his typical flair: “Relationship is excellent! Thank you for your attention to this matter!” He didn’t even mention the original “trade war” drama, thereby leaving it in the past like stale bread at a buffet.
So, if you were previously scared that the U.S. and China would keep brawling and cutting economic ties, breathe easier. The bipartisan “deal” is in place and the world can now turn its gaze to a market that hasn’t had a full‑body trade argument for a while.
Trump Gives His Take on the U.S.-China Tariff Truce
Just a day after the U.S. and China sealed a deal in London to roll back hundreds of tariffs, President Trump left us with a fresh set of comments that felt a bit like a secret recipe—he served up details no one had actually mentioned during the negotiations.
The Secret Ingredients
- China is to immediately supply critical minerals to the U.S.
- The U.S. tariff promise is a “total” of 55%—but how that adds up remains a bit of a mystery.
According to a white‑house insider, the 55% figure breaks down as follows:
- 10% base duty
- 20% surcharge for fentanyl traffic (yes, that oddly specific part of the deal)
- ~25% tied to the pre‑existing levies from Trump’s first term, plus the usual most‑favored‑nation rates
Trump’s “WIN” Vision
In a follow‑up tweet, Trump painted a picture of a close partnership: “President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!” It certainly sounds like a bipartisan sports‑match winning score, but the real crunch is whether the numbers match up when the papers come out.
US‑China Trade Talks: They Finally Sat Down Without Dropping Their Phones
After a rock‑solid month of bargaining that left both sides inching toward each other, the American and Chinese delegations officially wrapped up their marathon negotiations on Tuesday. The outcome? A fresh framework to bring critical minerals and other “sensitive goods” back into commerce, and a promise that both sides will carry this into their next leadership meetings.
Breaking Down the Deal
- Tariff Reset: US cuts Chinese tariffs from 145% to 30% – a veritable ‘taper cruise’ for Chinese goods.
- Chinese Sweetener: China pulls a 10% back‑roll on US imports for the next 90 days, smoothing the economic heat death spiral.
- 30‑Day Hi‑Jolly Pause: A 90‑day stop‑gap on “very high tariffs” – essentially a breathing space that the leaders hope will allow the Geneva ceasefire to stay in effect until August.
Why the Talk Was Even Harder Than a Cigar‑Smoking Negotiation
At a time when the trust between the two economies felt ritz‑ing into a landslide, a phone call between President Xi and former President Trump added a spark of cautious optimism. The two leaders laughed (only slightly, but enough to calm the wolves) and decided to keep pushing, even as accusations of each side breaking the 90‑day truce swirled in media feeds.
Behind the Official Statements
In the flurry of discussion, Beijing’s Vice‑Premier He Lifeng emerged as a key spokesperson. He said, “China does not want a trade war, but it’s not afraid of one.” The tone is a lot like saying, “We just don’t want a fight, but we’ll fight if they throw one at us.” He added, “We resolve differences through equal dialogue and mutual benefits. We’re honest in our consultations, but we also keep our principles.”
Meanwhile in London, the U.S. delegation was guided by Vice‑Premier He Lifeng (yes, the same person! – leaders tend to share names), Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. The U.S. Commerce Secretary Howard Lutnick dubbed it a “handshake.” The handshake felt less like a formal import agreement and more like a big, corporate hug as both sides feared the world’s second “so‑called” clash.
Things That Still Need Answering
- Will the 90‑day pause survive the August deadline? The world’s databases are all over it.
- How will the stricter export restrictions on rare earth elements affect the industries that depend on China’s supply dominance?
- Will the U.S. enforce its planned visa revocations on Chinese students involved in “critical fields”? The judgment call may keep academic circles on edge.
The Bottom Line
In short, after a chill‑miserable month of geopolitical back‑and‑forth, the U.S. and China have set a new “framework” that promises to keep trade tariffs low for the time being. With several questions still looming, only one thing is clear: It’s in both nations’ best interest to keep the tires from groaning on—while perhaps secretly hoping that the next negotiation won’t feel as if we’re negotiating a scone for two folks in a contest of who can whip the dough the fastest.