Trump Announces China Deal and New Tariffs

Former President Donald Trump announced Wednesday a tentative trade agreement with China, detailing proposed tariff structures and resource exchanges via his social media platform, Truth Social. Trump stated the deal is “subject to final approval” with President Xi Jinping.

The core of the agreement, as outlined by Trump, involves China supplying the United States with “full magnets, and any necessary rare earths, upfront.” In return, the U.S. would fulfill previously agreed-upon terms, including allowing Chinese students to continue attending American colleges and universities – a point Trump emphasized as personally agreeable.

Perhaps the most striking aspect of the announcement was Trump’s claim regarding tariffs. He asserted the U.S. is securing a 55% tariff rate on goods from China, while China would receive a 10% rate. This claim, presented in all capital letters, lacks independent verification and deviates significantly from established trade practices. Standard tariffs are typically applied equally to both importing and exporting nations.

While the announcement signals a potential shift in U.S.-China trade relations, the unilateral nature of the disclosure and the unusual tariff claims raise questions about the agreement’s legitimacy and enforceability. The reliance on a social media post as the primary source of information is also unconventional for such a significant economic development. It remains to be seen whether President Xi will confirm the details or if formal trade negotiations will follow. The stated “excellent” relationship, according to Trump, appears to be the foundation for this currently unconfirmed arrangement.