Trump says trade framework deal 'done' with China

US president says Beijing will supply rare earths while US will give access to universities

US president Donald Trump said a trade framework trade and cooperation deal with China was complete. Picture: AP/Alex Brandon

US president Donald Trump said a trade framework with China was completed that included an agreement for Beijing to supply rare earths “UP FRONT” as well as access for Chinese students at American universities.

“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,” Mr Trump posted on social media on Wednesday, referring to Chinese leader Xi Jinping.

Mr Trump’s comments come a day after the US and China reached an agreement in London on implementing the terms of their tariff truce. His remarks, however, included terms negotiators did not lay out, such as the immediate supply of critical minerals by China. He also said the US tariff rate would be a “total” of 55% — though the precise rate was not clear.

That figure includes a 10% baseline duty, a 20% charge tied to fentanyl trafficking, and roughly 25% from preexisting levies from Mr Trump’s first term, as well as most favoured nation rates, according to a White House official.

Markets reacted with uncertainty to the president’s post. US futures briefly erased losses before moving lower again.

“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA,” Trump said in his post. “LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” 

China’s Ministry of Commerce did not immediately respond to requests for comment.

American and Chinese officials concluded marathon negotiations on Tuesday, agreeing to revive the flow of sensitive goods, such as critical minerals, and implement the terms of last month’s deal in Geneva, which saw both sides lower tariffs.

That deal included a 90-day pause on very high tariffs both nations implemented on each others’ imports that amounted to a de facto trade embargo. It is unclear whether that deadline, which expires in August, remains in effect.

Bloomberg