President Donald Trump says it’s official: the long-running trade battle between the U.S. and China has reached a turning point....READ ORIGINAL & FULL CONTENT FROM SOURCE |
In a post on Truth Social this Wednesday, Trump declared that a new trade deal with China is “done,” signaling the end of another tense round of negotiations between the world’s two biggest economies. But what does “done” really mean?
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Talks in London Lead to breakthrough
The announcement came after two days of high-level talks in London, where U.S. and Chinese delegates met to finalize a framework that had first been discussed last month in Geneva. U.S. Treasury Secretary Scott Bessent led the American side, and left the talks Tuesday evening as both countries agreed to resume the terms initially drafted in Switzerland.
China described the discussions as “reasonable” and “frank,” and emphasized the need for both sides to follow through on their commitments. A statement from Chinese state media called for integrity and mutual action in implementing the deal.
Tariffs adjusted — but still in place
While the deal is being celebrated as progress, it doesn’t mean the trade war is over entirely. Trump announced that baseline tariffs on Chinese imports to the U.S. will now rise to 55%, while Chinese tariffs on U.S. goods will settle at 10%.
Though this is far lower than the record-high 245% levies during the height of their trade standoff, the new rates are still steep.
This adjustment reflects a compromise, tariffs are not disappearing, but both sides appear to be retreating from extremes.
Rare earth minerals back in play
One of the major wins for the U.S. in the new agreement is China’s decision to resume rare earth exports. China holds a near-monopoly on these minerals, which are essential in manufacturing electronics, electric vehicles, and even defense systems.
Tensions had spiked earlier this year when China cut off exports to the U.S. and Europe, creating supply chain concerns.
Now, under the deal, China will provide these materials “up front,” according to Trump, a concession that could stabilize several American industries that rely on them.
A softer stance on Chinese Students?
Interestingly, Trump also walked back a controversial policy announced by Secretary of State Marco Rubio. Earlier plans would have restricted visas for Chinese students linked to the Communist Party or studying sensitive subjects.
But Trump said that Chinese students will continue to be allowed to study in the U.S., calling their presence in American colleges “always good with me!”
It’s a notable reversal and a sign that educational exchange may be used as a tool for easing diplomatic tension.
What to note
Trump’s declaration that the deal is “done” doesn’t mean the end of all friction between the U.S. and China, but it does mark a shift toward managed competition rather than open conflict.
Tariffs are still high, trust is still fragile, but key resources are moving again, and students aren’t being shut out. In global trade terms, this might just be what progress looks like.
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