According to the latest reports by several media outlets, the US is set to impose a fixed tariff of 55% on Chinese goods, consolidating earlier tariffs (baseline, fentanyl-related and Section 301). Meanwhile, China is expected to apply a tariff of 10% on US goods. 

Beijing has also agreed to resume exports of rare-earth minerals for civilian use. According to Treasury Secretary Scott Bessent, the deal would not involve the US reducing its export restrictions on high-end artificial intelligence chips in exchange for this agreement.

The deal was reached in principle after two days of talks between the countries’ delegations in London, but it has yet to be finalised and approved by President Trump and President Xi.

As a goodwill measure tied to the trade deal, the US has also agreed to ease visa restrictions for Chinese students.

“Our deal with China is done, subject to final approval with President Xi and me”, US President Donal Trump said on Truth Social. “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% tariffs; China is getting 10%”.