A novel trade framework emerged between the United States and China as President Trump announced the completion of the deal which marked an end to the current trade conflict phase. The agreement sets U. S. The United States imposes a 55% tariff rate on Chinese imports while removing educational barriers for Chinese students in American institutions and China agrees to deliver essential rare‑earth minerals.
/*Tariff Structure Explained */
President Trump disassembled the 55% U. S. The tariff structure includes a 10% global baseline rate combined with a 20% charge related to fentanyl issues and an additional 25% legacy Section 301 tariff. Through reciprocal measures China intends to sustain approximately a 10% import duty on goods from the United States. Two days of intense negotiations in London produced the framework which seeks to strengthen a temporary Geneva truce while working toward a comprehensive agreement by the August 10 deadline.
/* Rare Earths & Export Controls*/
China has consented to deliver complete magnets along with all required rare earth materials in advance to the U. S. —materials critical to sectors spanning electronics and defense industries. However, the U. S. The export restrictions on advanced AI chips and aerospace components will remain unchanged. Scott Bessent, the Treasury Secretary, stated that no exchange deal exists between chips and rare earths.
/*U.S. Student Visa Reprieve*/
Per the deal, Chinese students will now be permitted to continue or begin enrollment in American colleges and universities—reversing previous policies that sought to cancel visas for those associated with certain politically sensitive connections. In this context, President Trump stated that student exchange programs had, “always been good with me!”. This further demonstrates the value placed on academic relationships even with competing nations.
/*Market Response and Other Considerations*/
The initial market response reflects caution. The deal, while providing some level of certainty, still requires final sign off from both Presidents Trump and Xi Jinping. As previously noted, former Commerce Secretary Wilbur Ross called it “far from comprehensive,” with concerns it was overly centered on export control systems rather than structural changes, like IP protection. Still, Commerce officials praised the agreement as providing “meat on the bones” to the Geneva accord.