The U.S. and China have reportedly agreed to the framework of a trade deal, following two days of negotiations in London and a phone call between President Donald Trump and China's leader Xi Jinping.
According to a June 11 post from Trump to his Truth Social platform, the U.S. tariff rate against China would be set at 55%, while Chinese tariffs against the U.S. would come in at 10%. As part of the deal, China would also loosen export restrictions on rare earth minerals and magnets, and the U.S. would end the suspension of student visas for Chinese students at colleges and universities.
In a statement to CNBC, the White House clarified that the 55% tariffs against China would include the 30% rate already in place, as well as the 10% blanket duties in effect against all countries, and the 25% levies against specific Chinese products that are also already active. While leaders with the Chinese government didn't confirm the exact details reported by the Trump administration, they did affirm to the Associated Press that the two sides had indeed come to an agreement on a framework deal.
The U.S. and China had initially agreed to a 90-day pause on reciprocal tariffs dating back to May 14, where the U.S. temporarily reduced its 145% rates against China to 30%, while China took its 125% tariffs against the U.S. down to 10%. If the framework is finalized, it would essentially set the terms of that pause in stone, and provide businesses with the first real semblance of long-term stability regarding global trade that they've seen since Trump took office in January.
