U.S. strikes trade deal with China, Trump says

The United States reached a mutually beneficial preliminary trade agreement with China, President Donald Trump said in a Wednesday morning statement. The deal is done, subject to final approval, and America’s relationship with China is excellent, according to Trump. The announcement came after U.S. trade representatives restarted negotiations on Monday with China’s trade delegation in London.

What are the terms of the deal? China will supply full magnets and any necessary earths to the United States up front, Trump said. In return, America will give China everything delegates agreed upon and will continue allowing Chinese students to attend U.S. colleges and universities, he added. Trump did not give details on what else the United States agreed to give China. However, he added that the United States will levy a total tariff of 55% on Chinese goods, with China imposing a 10% import tax in return.

What has China said about the deal? Representatives from China and the United States conducted professional and in-depth negotiations for the past two days, said Li Chenggang, an international trade representative and a deputy secretary with China’s Ministry of Commerce. Both sides agreed to a principal framework for implementing agreements made between Trump and Chinese President Xi Jinping over the phone and in Geneva last month, he added.

Both sides should continue to work together and to sincerely honor their commitments in order to implement consensus and jointly safeguard the hard-won results of dialogue, according to a Wednesday statement from Chinese Vice Premier He Lifeng. Both sides will continue communicating to promote steady economic growth and trade relations for both countries, which will ultimately yield overall stability to the international economy, he added.

Dig deeper: Read my previous report for more background on the U.S.-China trade talks.