US-China Trade War Deal Reached, Trump Says
After years of tariff hikes, diplomatic tension, and economic uncertainty, former President Donald Trump now claims the US-China trade war is over. In a post on Truth Social, Trump announced that a trade deal has been reached to secure rare earth material supplies for the US, maintain a 55% tariff on Chinese imports, and allow Chinese students to continue studying in American universities. While the deal still needs formal approval from both Trump and Chinese President Xi Jinping, the announcement signals a potential turning point in a conflict that has rattled global markets since 2018.
US-China Trade War Deal: What’s Included?
The newly announced deal between the US and China covers several key areas. Most notably, it locks in the combined 55% tariff rate—30% introduced earlier in 2025 and 25% from prior measures. Additionally, China has agreed to a 10% tariff on US exports, creating what Trump’s team describes as a “balanced” trade arrangement. The agreement also ensures continued access to rare earth materials, which are vital to the production of tech devices, electric vehicles, and defense equipment—industries that depend heavily on imports from China.
How the Trade Deal Impacts US Businesses and Consumers
The implications of the US-China trade war resolution are wide-ranging. For American companies, predictable tariffs may reduce uncertainty and help streamline supply chain planning. Manufacturers who rely on rare earth minerals could see more stable pricing, while universities benefit from the continued flow of Chinese students—a major source of revenue. However, the overall 55% tariff level remains high, which means prices on consumer goods may stay elevated for the foreseeable future. While it’s not a return to pre-trade war normalcy, it’s a step toward economic stability.
Is the US-China Trade War Really Over?
While Trump’s announcement paints a hopeful picture, experts remain cautious. The deal is still “subject to final approval,” and prior negotiations between the US and China have collapsed at the last minute. Just weeks ago, tensions escalated when the US proposed revoking visas for Chinese students and China retaliated with restrictions on rare earth exports. Whether this new agreement holds depends largely on diplomatic follow-through. For now, both nations have paused tariff increases, and talks appear to be moving in a more cooperative direction.