Following two days of discussions in London, US President Trump has declared a fundamental agreement with China concerning ongoing trade issues. According to Trump, the agreement includes a reduction in export restrictions on rare earths. He noted that formal approval from himself and China’s head of state XI Jinping is still required, as stated on his social media platform Truth Social.

The US President indicated that Beijing has committed to supplying specific raw materials, including rare earths, to the United States. In return, China will receive “what was agreed,” which Trump specified includes opportunities for Chinese students to study at American universities. Further details were not provided.

Beijing acknowledges “Progress”

Trump also mentioned an agreement regarding the customs dispute between the world’s two largest economies. The United States will reportedly raise customs duties of 55 percent on Chinese goods, while China will implement a ten percent tariff on US goods.

The 55 percent duty rate would represent a significant increase from the 30 percent rate previously established in Geneva in May.Prior to these negotiations, both the United States and China had imposed increasingly higher tariffs and counter-tariffs on each other’s goods.

Chinese government representatives have acknowledged “progress” in the discussions held in London, describing the exchange as fundamentally constructive. A deputy head of government HE called for both sides to “reduce misunderstandings and strengthen cooperation” as the next step.

Preliminary Agreement Announced Earlier

Negotiators had previously indicated a preliminary agreement on the trade and customs conflict without providing specific details. The outcome is expected to be presented to Trump and XI for final approval.

Vice Prime Minister He Lifeng and Minister of Commerce Wang Wentao represented China in the London talks. The United States delegation included US Finance Minister Scott Bessent and Minister of Commerce Howard Lutnick.

Merz: “Not at the Expense of Europe”

Chancellor Friedrich Merz has welcomed the trade agreement. “This is not at the expense of Europe, but that is another conflict that could be removed,” said the CDU politician. “I expressly welcome that. I very much hope that we will also succeed in reducing the trade conflicts with the Americans in a similar way and, if possible.”

He also stated his belief that open markets, free trade, and access to raw materials are the optimal solution for all parties involved.

Trade War Clouds Global Economic Outlook

the ongoing trade conflict between Beijing and Washington has had substantial repercussions for the global economy. The recent meeting suggests a potential path toward de-escalation in the strained trade relationship.

In mid-May, China and the USA engaged in discussions in Geneva for the first time since the escalation of the customs dispute.During that meeting, both sides agreed to temporarily reduce thier tariffs for a period of 90 days. In April, Trump had increased tariffs on goods from China to as high as 145 percent. In response, Beijing implemented export controls and imposed counter-tariffs of up to 125 percent on imports from the United States.

the trade war has consistently generated anxiety in the stock markets and has cast a shadow over the prospects for the global economy. According to US sources, the primary focus of the London talks was on export controls and the supply of rare earths. The dependence of numerous countries and industries on China in this sector is particularly significant, giving the government in Beijing the potential to disrupt global supply chains.