US-China deal is done
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“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL BY PRESIDENT XI AND ME” — posted on his Truth Social account forbes.com+15reuters.com+15cointelegraph.com+15.
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Key provisions include:
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China supplies rare earths and magnets “up front.”
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US allows Chinese students continued access to colleges and universities cbsnews.comcbsnews.com+10reuters.com+10bloomberg.com+10.
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Tariffs summary: US imposes 55% cumulative tariffs; China sets 10% on US goods abcnews.go.com+11reuters.com+11investopedia.com+11.
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Breakdown of US 55%: 10% baseline, 20% fentanyl-related, 25% pre-existing Section 301 tariffs .
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What Led to This Deal
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Talks in London (June 9‑10) restarted the Geneva truce reached in May, which had reduced retaliatory tariffs apnews.com+15ft.com+15nypost.com+15.
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London discussions focused on implementation, especially around rare earth exports and easing US export restrictions wsj.com+13ft.com+13reuters.com+13.
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Chinese Vice‑Minister Li Chenggang described the meetings as “rational, in‑depth and candid” nypost.com+3ft.com+3cointelegraph.com+3.
Market & Economic Impact
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Chinese CSI 300 Index and US futures responded positively to the news bloomberg.com+2ft.com+2cointelegraph.com+2.
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Bitcoin surged toward record highs, buoyed by reduced global trade tensions nypost.com+5cointelegraph.com+5theguardian.com+5.
What Happens Next
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Final approval is required from Trump and Xi — deal is framed as a “framework,” not a legally-binding treaty bloomberg.com+13abcnews.go.com+13investopedia.com+13.
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Upon approval, a 90-day window kicks in to roll back tariffs and implement commitments ft.com.
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Remaining challenges include deep-seated disagreements over state-led Chinese economic practices and US tech export controls reuters.com+1ft.com+1.
Quick Summary
| Element | Trump’s Deal Highlights |
|---|---|
| Rare earths & magnets | China to supply them “up front” |
| Chinese students | Allowed continued access to US universities |
| Tariff rates | US charges 55%, China charges 10% |
| Next step | Awaiting Trump ↔ Xi approval; 90-day implementation period |
Overall Significance
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This marks a major revival of the US‑China trade truce, reversing some of the recent escalation.
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If finalized, it could ease supply chain strains in sectors like electronics and defense while stabilizing global markets.
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Yet, both sides must navigate underlying strategic tensions, particularly in tech and economic behavioral norms.