There has been a remarkable development in the long-standing trade war between the US and China. Former US President Donald Trump announced the completion of a comprehensive trade agreement between the parties as a result of negotiations with Chinese President Xi Jinping. The announcement on Truth Social follows the previously announced 90-day tariff truce.
Trump: Our deal with China is finalized
The months-long trade war between the US and China seems to have entered a new phase with official statements today. Former US President Donald Trump announced on Truth Social that the trade deal with Chinese President Xi Jinping is “complete”. According to Trump, the deal is subject only to the final approval of the two leaders.
Trump's post read as follows: “Our deal with China is complete, subject to final approval by Xi and me. Full magnetics and all necessary rare earth elements will be supplied in advance by China. We get 55% tariffs, China gets 10%. Relations are excellent!”
This follows a 90-day “tariff truce” between the two countries announced last month. Since then, the two sides have temporarily suspended tariffs, but the details of the agreement have not been finalized. On Thursday, June 6, following a phone call that lasted about an hour and a half, Trump announced that talks would begin in London on Monday, June 9. Most recently, the US President announced that a final agreement had been reached.
Trump also stated that the agreement is not limited to trade products. He emphasized that Chinese students will continue to have access to US universities: “It has always been positive for me that Chinese students use our colleges and universities.”
Recently in crypto market
Following Trump's statements, financial markets and especially the cryptocurrency market reacted weakly positive. Trump's deal, which is said to have been reached with tariff rates of “55% - 10%”, may ease the perception of global economic risk and provide a shift towards assets such as Bitcoin. For now, no significant change has been observed in the price of the leading cryptocurrency.
A new page in the trade war
The protracted trade war, which started during the Trump era, has seen many ups and downs so far. The harsh imposition of tariffs had strained global supply chains and increased inflationary pressures. Although the tariffs, which have been reduced to reasonable levels for now, have a negative impact on prices in the short term, they are welcomed by the markets in terms of reducing the risk of recession.
According to experts, the deal is critical for the US to regain easy access to rare earth elements from China. These elements have a strategic role in many fields, especially in the technology and energy sectors. In addition, the US was expected to make such transition agreements in line with its goal of gradually moving production to its own territory.
