Donald Trump Resolves Trade War with China, Announces New Trade Deal

International Desk

Washington/London, June 13, 2025: U.S. President Donald Trump has announced the resolution of the long-standing trade war with China through a new trade agreement. The deal was finalized after two days of marathon discussions between senior officials from both countries in London on Tuesday and Wednesday, building on a provisional tariff suspension reached in Geneva last May.

In a post on his social media platform Truth Social, Trump stated:

“The deal with China is done, but it awaits final approval from me and Chinese President Xi Jinping. We’re getting a total of 55% tariffs on Chinese goods, while China is getting 10% tariffs on our goods. Our relationship is absolutely fantastic!”

Under this agreement, China will relax its export restrictions on rare earth minerals and magnetic materials, critical for the U.S. automotive and defense industries. Following Trump’s announcement of new tariffs in April, China had imposed strict controls on these exports, significantly disrupting the supply chain for U.S. companies.

U.S. Commerce Secretary Howard Lutnick noted that this “framework agreement” would resolve China’s export restrictions, while the U.S. would, in turn, ease its sanctions on semiconductors and other technology products. He described the deal as “a balanced approach, as President Trump has emphasized.”

However, analysts suggest that the agreement largely represents a return to the pre-April situation, when Trump had imposed a 145% tariff on Chinese goods, and China had retaliated with 125% tariffs. Following a 90-day suspension announced in Geneva in May, both sides reduced tariffs to 30% and 10%, respectively. While the current agreement raises U.S. tariffs to 55%, it is seen as a positive step compared to earlier levels, signaling progress in trade relations.

China’s state news agency Xinhua stated that both sides must honor their commitments and work towards “moving in the same direction.” However, China has yet to officially confirm details of the deal.

As part of the agreement, the U.S. has pledged to continue allowing Chinese students to study at American universities, an issue that had recently sparked controversy. Trump remarked, “This was always fine by me.”

Although the agreement has brought some relief to global trade, experts caution that tariffs remain historically high, potentially imposing additional costs on American consumers and businesses. Executives in logistics and retail industries argue that supply chain disruptions are still ongoing.

The deal is expected to be finalized by July 8, when the provisional tariff suspension expires. It will take effect following signatures from Trump and Xi Jinping.