The United States and China have reached a trade agreement that includes U.S. tariffs on Chinese goods and Chinese exports of rare earth minerals, President Donald Trump said on Wednesday.
The deal still needs final approval from Trump and Chinese President Xi Jinping.
Trump said the U.S. will impose a total of 55% tariffs on Chinese imports. This includes a 10% base tariff, a 20% tariff for fentanyl-related issues, and a 25% continuation of earlier tariffs.
China will apply a 10% tariff on goods from the U.S., according to a White House official.
“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” Trump wrote on Truth Social.
As part of the agreement, China will supply magnets and rare earth elements, and the U.S. will allow Chinese students to attend American colleges and universities. “Full magnets, and any necessary rare earths, will be supplied, up front, by China,” Trump said.
On Tuesday, officials from both countries said they had agreed on a framework to reset their trade relationship and lift China’s export restrictions on rare earth minerals. However, they gave no sign of a long-term solution to their broader trade tensions.
U.S. Commerce Secretary Howard Lutnick said after talks in London that the new framework adds detail to a deal reached last month in Geneva. That agreement aimed to ease retaliatory tariffs from both countries.
Earlier disputes had escalated when China limited exports of critical minerals. The U.S. responded by placing export controls on semiconductor design software, aircraft, and other items.
The changes in tariff policy have caused disruptions in global markets, slowed shipping at major ports, and increased costs for many companies.
