President Donald Trump declared Wednesday that negotiations with China are finished after high-level trade talks wrapped up in London, though the agreement awaits final approval from both leaders and appears to largely reaffirm existing arrangements rather than break new ground.
“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,” Trump posted on Truth Social in full capitalization. “FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!).”
Trump continued, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!”
The announcement came after Commerce Secretary Howard Lutnick revealed that negotiators had “reached a framework to implement the Geneva consensus” following two days of marathon meetings in London between American and Chinese officials.
The development represents an effort to restore the trade truce struck in Geneva last month, which had stalled after both sides accused each other of violating its terms. The May agreement dropped U.S. tariffs from 145% to 30% on most Chinese goods, while China agreed to lower tariffs on most U.S. goods from 125% to 10%.
However, Trump’s proclaimed 55% tariff rate appears to be more of a comprehensive accounting of existing duties rather than a major change from the Geneva framework. A White House official explained to The New York Post that the 55% rate includes a 10% baseline rate imposed on nearly all countries, a 20% rate levied on Beijing due to the fentanyl crisis, plus roughly 25% for preexisting tariffs from various trade measures.
The London talks involved Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, Chinese Vice Premier He Lifeng, and Chinese Commerce Minister Wang Wentao. The negotiations followed a phone call last week between Trump and Chinese President Xi Jinping that Trump described as “very good.”
A key goal for American negotiators was encouraging Beijing to accelerate exports of rare-earth minerals and magnets containing them, which are crucial for electronics and automotive production. Meanwhile, Beijing’s negotiators asked the U.S. to ease restrictions on technology and other goods sales to China.
“We do absolutely expect that the topic of rare earth minerals and magnets, with respect to the United States of America, will be resolved in this framework implementation,” Lutnick said.
The trade relationship had deteriorated recently after China accused the U.S. of undermining their Geneva agreement. According to the Chinese Ministry of Commerce, the U.S. “has successively introduced a number of discriminatory restrictive measures against China, including issuing export control guidelines for AI chips, stopping the sale of chip design software (EDA) to China, and announcing the revocation of Chinese student visas.”
Lutnick expressed optimism about the agreement, saying “I feel really good about where we got to” and indicating he expects Trump to approve the framework as soon as Wednesday.
Trump added in a subsequent post, “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!!”
The original Geneva truce was designed to give both sides until August 10 to broker a more comprehensive trade deal. Current tariff levels include 55% on $250 billion worth of Chinese goods, 37.5% on $140 billion in imports, 75% on steel and aluminum, and 50% on autos and parts.
Trade expert Henrietta Treyz, director of economic policy research at Veda Partners, cautioned that the discussions “keep us treading water, not gaining ground” and noted that even when deals are reached, tariffs typically remain in place.
“Investors should start getting very comfortable with tariffs where they are because even when deals are reached, they’re not coming off,” Treyz said, pointing to recent agreements that maintained significant tariff levels.
The London framework does not yet tackle the deep underlying differences between the two economic powers on trade policy. Neither side revealed specific details of what was agreed to in the framework.
White House Press Secretary Karoline Leavitt emphasized the administration’s broader trade strategy, stating, “At the direction of President Trump, the Administration is aggressively moving to onshore critical supply chains, including the production of magnets, in the United States.”
The agreement comes as other trade negotiations continue elsewhere. The European Union expects its trade talks with the U.S. to extend beyond the July 9 deadline, while Mexico and the U.S. are reportedly close to a deal that would lower the 50% tax on steel imports.