President Trump declared the U.S.-China trade deal “done” on social media, following two days of intensive negotiations in London that hammered out a framework to revive the Geneva truce by lifting Chinese rare earth export curbs and easing U.S. tech export controls. The agreement, still subject to final sign-off by Presidents Trump and Xi Jinping, aims to stabilize a trade relationship that had teetered on the brink after mutual tariff escalations.
The deal reportedly reduces U.S. reciprocal tariffs from a combined 145% to a baseline of 55%, reflecting the sum of various levies, while trimming Chinese duties from 125% to 10% on U.S. goods. Commerce Secretary Howard Lutnick described the London talks as putting “meat on the bones” of last month’s Geneva consensus, but many implementation details—such as precise schedules for permit approvals—remain pending presidential approval.
Market Overview:- Trump announces trade deal “done,” pending Xi’s approval following London talks
- U.S. reciprocal tariffs cut to 55%; China to lower duties to 10%
- Framework aims to lift rare earth export curbs and ease U.S. tech controls
- London negotiations led by Lutnick, Bessent, and USTR Greer; Chinese team headed by Vice Premier He Lifeng
- Geneva agreement on 90-day tariff pause now seeks binding licensing and permit frameworks
- High-end Nvidia (NVDA) AI chips remain excluded from U.S. concessions
- Presidential sign-off required; timelines for tariff adjustments and export permits still unclear
- Follow-up sessions possible if “meat on the bones” framework needs further definition
- Deal’s success could ease global supply-chain disruptions and reduce market volatility
- President Trump’s declaration that the U.S.-China trade deal is “done” signals a breakthrough in negotiations, reducing the risk of a full-scale trade war and restoring confidence in global supply chains.
- The agreement cuts U.S. reciprocal tariffs from a combined 145% to a baseline of 55% and slashes Chinese duties from 125% to 10% on U.S. goods, significantly lowering costs for businesses and consumers on both sides.
- Lifting Chinese rare earth export curbs and easing U.S. tech export controls will address critical supply shortages for key industries, supporting manufacturing, defense, and technology sectors.
- U.S. stock futures inched higher on the announcement, reflecting cautious optimism that the deal will avert a sharp snapback to triple-digit tariffs and reduce market volatility.
- The framework puts “meat on the bones” of last month’s Geneva consensus, providing a clear path forward for stabilizing the U.S.-China trade relationship and supporting global economic growth.
- Successful implementation could ease global supply-chain disruptions and restore investor confidence, benefiting multinational corporations and trade-dependent industries.
- The deal remains subject to final sign-off by Presidents Trump and Xi Jinping, and many implementation details—such as precise schedules for permit approvals—are still pending, creating lingering uncertainty.
- High-end Nvidia AI chips remain excluded from U.S. concessions, limiting China’s access to critical technology and potentially constraining global innovation and supply chain resilience.
- If presidential approval is delayed or if key details remain unresolved, the risk of renewed tariff escalations or policy reversals remains high, threatening to destabilize markets.
- The agreement does not address fundamental disagreements over China’s state-driven economic model or long-standing U.S. grievances about unfair trade practices, leaving underlying tensions unresolved.
- Follow-up sessions may be needed to further define the “meat on the bones” framework, prolonging uncertainty and delaying the anticipated benefits for businesses and investors.
- Clear, timely implementation will be crucial, but bureaucratic hurdles and regulatory complexity could slow the transition from agreement to enforceable regulations, limiting near-term relief.
U.S. stock futures inched higher on the announcement, reflecting cautious optimism that the deal could avert a sharp snapback to triple-digit tariff levels and restore confidence in global trade flows disrupted by recent policy shifts.
The ultimate test will come as both governments translate the framework into enforceable regulations. Clear, timely implementation will be crucial to ensure the agreement goes “from paper to permit” and delivers tangible relief to industries reliant on critical minerals and advanced technology components.
