Our deal with China is done, says US President Donald Trump

The deal is still subject to approval of US President Donald Trump and China’s Xi Jinping. Pics/AFP

US President Donald Trump on Wednesday announced that a deal with China "is done" after two days of talks in London, marking a turnaround in the trade war between the two major economies. The deal awaits approval by him and Chinese President Xi Jinping.

"Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China. 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 per cent tariffs, China is getting 10 per cent. Relationship is excellent! Thank you for your attention to this matter!" Trump wrote on Truth Social, adding that He and President Xi would work closely together to open up China to American Trade. "This would be a great WIN for both countries!!!"

Police officers ready to enforce a curfew in Los Angeles officers arrest a protester in Chicago, on Tuesday

The London talks focussed on both sides reaching a deal on China resuming supplies of rare earth metals, the key elements needed to manufacture mobile phones, semiconductors and missiles, besides automobile production. While China blocked rare earth exports, the US restricted Beijing's access to US goods such as semiconductors and other related technologies linked to artificial intelligence (AI).

"We have reached a framework to implement the Geneva consensus. Once the presidents approve it, we will then seek to implement it," US Commerce Secretary Howard Lutnick said following the talks. According to the International Energy Agency, China accounts for 61 per cent of global mined rare earth production but controls 92 per cent of the global output.

Both the US and China agreed to temporarily lower tit-for-tat tariffs after talks in Geneva last month. The truce is due to last 90 days. Trump imposed 145 per cent of tariffs against the Chinese exports of about $439.9 billion and China retaliated with 125 per cent on American exports of about $143 billion.

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