President Trump Announces New U.S.-China Trade Agreement
On June 11, 2025, President Donald J. Trump announced a new trade agreement with China, marking a significant step in addressing trade tensions between the world’s two largest economies. The deal, pending final approval from Trump and Chinese President Xi Jinping, aims to ease tariffs and secure critical supply chains while maintaining a firm stance on U.S. economic interests.
Under the agreement, the U.S. will impose a total of 55% tariffs on Chinese goods, while China will face a 10% tariff on U.S. imports. This follows a series of tariff escalations, with U.S. tariffs on China previously reaching 145% and Chinese retaliatory tariffs hitting 125%. The deal includes provisions for China to supply magnets and rare earth minerals upfront, essential for U.S. manufacturing, technology, and defense sectors.
The deal includes provisions for China to supply magnets and rare earth minerals upfront, essential for U.S. manufacturing, technology, and defense sectors. In return, the U.S. will allow Chinese students to continue attending American universities, addressing a prior point of contention.
Trump hailed the agreement as a “done deal” on social media, emphasizing its benefits for American workers and industries. The negotiations, held in London, followed a 90-minute call between Trump and Xi, reflecting the urgency to de-escalate a trade war that had disrupted nearly $600 billion in bilateral trade. The agreement builds on a 90-day tariff pause announced in May, which reduced U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. goods to 10%.
While details remain subject to finalization, the deal establishes a framework for ongoing trade discussions, with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer leading future talks alongside China’s Vice Premier He Lifeng. The agreement has sparked mixed reactions, with some praising the reduction in trade barriers and others criticizing the remaining high tariffs as burdensome for U.S. small businesses.
The deal signals a pragmatic approach to balancing economic cooperation with strategic competition, aiming to stabilize global markets while addressing U.S. concerns over trade deficits and supply chain vulnerabilities.