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Trump says US tariffs will be set at 55%, China's at 10%

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Lutnick says deal should resolve rare earth minerals,

magnet

curbs

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Deal aims to keep Geneva trade truce on track

By Doina Chiacu, Alistair Smout

WASHINGTON/LONDON, June 10 (Reuters) -

A U.S.-China trade deal is "done," U.S. President Donald

Trump said on Wednesday, hours after negotiators from Washington

and Beijing agreed on a framework to get a fragile trade truce

back on track and remove Chinese export restrictions on rare

earth minerals and other critical industrial components.

Trump took to his social media platform to offer some of

the first details to emerge from two days of marathon talks held

in London that had, in the words of U.S. Commerce Secretary

Howard Lutnick, put "meat on the bones" of an agreement reached

last month in Geneva to ease bilateral retaliatory tariffs that

had reached crushing triple-digit levels.

"Our deal with China is done, subject to final approval with

President Xi and me," Trump said on the Truth Social platform.

"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%."

A White House official said the 55% represents the sum of a

baseline 10% "reciprocal" tariff Trump has imposed on goods

imported from nearly all U.S. trading partners; 20% on all

Chinese imports because of punitive measures Trump has imposed

on China, Mexico and Canada associated with his accusation the

three facilitate the flow of the opioid fentanyl into the U.S.;

and finally pre-existing 25% levies on imports from China that

were put in place during Trump's first term in the White House.

The U.S. president later posted: "President XI and I are

going to work closely together to open up China to American

Trade. This would be a great WIN for both countries!!!"

Other specifics for how the deal would be implemented

remained unclear.

China's commerce ministry did not immediately reply to a

request for comment and more information.

FRAMEWORK FOR A DEAL

Officials from the two superpowers had gathered at a rushed

meeting in London starting on Monday following a call last week

between Trump and Chinese leader Xi Jinping that broke a

standoff that had developed just weeks after a preliminary deal

reached in Geneva that had defused their trade war.

The Geneva deal had faltered over China's continued curbs on

critical minerals exports, prompting the Trump administration to

respond with export controls preventing shipments of

semiconductor design software, aircraft and other goods to

China.

Lutnick said the agreement reached in London would remove

restrictions on Chinese exports of rare earth minerals and

magnets and some of the recent U.S. export restrictions "in a

balanced way," but did not provide details after the talks

concluded around midnight London time (7 p.m. EDT).

"We have reached a framework to implement the Geneva

consensus and the call between the two presidents," Lutnick

said, adding that both sides will now return to present the

framework to their respective presidents for approvals.

"And if that is approved, we will then implement the

framework," he said.

In a separate briefing, China's Vice Commerce Minister Li

Chenggang also said a trade framework had been reached in

principle that would be taken back to U.S. and Chinese leaders.

'BACK TO SQUARE ONE'

Trump's shifting tariff policies have roiled global markets,

sparked congestion and confusion in major ports, and cost

companies tens of billions of dollars in lost sales and higher

costs.

The World Bank on Tuesday slashed its global growth forecast for

2025 by four-tenths of a percentage point to 2.3%, saying higher

tariffs and heightened uncertainty posed a "significant

headwind" for nearly all economies.

The U.S.-China deal may keep the Geneva agreement from

unravelling over duelling export controls, but does little to

resolve deep differences over Trump's unilateral tariffs and

longstanding U.S. complaints about China's state-led,

export-driven economic model.

The two sides left Geneva with fundamentally different views

of the terms of that agreement and needed to be more specific on

required actions, said Josh Lipsky, senior director of the

Atlantic Council's GeoEconomics Center in Washington.

"They are back to square one, but that's much better than

square zero," Lipsky added.

It was not immediately clear from Trump's comments where things

stood regarding the timeline for a more comprehensive deal that

had been reached last month in Geneva. There, the two sides set

August 10 as the deadline to negotiate a more comprehensive

agreement to ease trade tensions, or tariff rates would snap

back from about 30% to 145% on the U.S. side and from 10% to

125% on the Chinese side.

(Additional reporting by David Milliken and William James in

London and Sachin Ravikumar; Ethan Wang, Shi Bu, Yuhan Lin and

Alessandro Diviggiano in Beijing; Writing by David Lawder, Kate

Holton and Liz Lee; Editing by David Evans, Mark Potter, Nick

Zieminski, Lincoln Feast and Paul Simao)