Trump Says China Deal Is 'Done, Subject To Leaders' Agreement
US President Donald Trump said a trade framework with China has been finalized, including an agreement for Beijing to supply rare earths "UPFRONT" as well as access for Chinese students at American universities.
"OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL AGREEMENT WITH PRESIDENT XI AND I," Trump wrote on social media, referring to Chinese leader Xi Jinping.
Trump's comments on Wednesday came a day after the US and China reached an agreement in London on implementing the terms of their tariff truce.
However, his remarks included provisions not set by negotiators, such as China's direct supply of critical minerals. He also said US tariffs would be a "total" 55% — though the exact rate was unclear. The figure includes a 10% base tariff, a 20% fee tied to fentanyl trafficking, and about 25% of existing levies from Trump’s first term and most-favored-nation tariffs, according to a White House official.
Markets reacted with uncertainty to the president’s post, with U.S. futures briefly erasing losses before moving lower again.
Read more: GLOBAL INSIGHT: The Wild Ride of U.S.-China Tariffs — In One Chart
“FULL MAGNET, AND ANY RARE EARTH NEEDED, WILL BE PROVIDED, IN ADVANCE, BY CHINA,” Trump said in his post. “Similarly, WE WILL GIVE CHINA WHAT WE HAVE AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGE AND UNIVERSITY (WHICH IS ALWAYS GOOD TO ME!). WE GET 55% TOTAL TARIFFS, CHINA GET 10%. THE RELATIONSHIP IS VERY GOOD!”
China’s Commerce Ministry did not immediately respond to a request for comment.
U.S. and Chinese officials ended marathon negotiations on Tuesday, agreeing to revive the flow of sensitive goods, such as critical minerals, and implement the terms of last month’s deal in Geneva that saw both sides roll back tariffs.
The deal included a 90-day pause on the sky-high tariffs the two countries have imposed on each other’s imports that amount to a de facto trade embargo. It’s unclear if that deadline, which expired in August, is still in effect. (alg)
Source: Bloomberg
