President Donald Trump took to social media on Wednesday morning to announce progress on a trade deal with China, a development he claims could significantly impact American consumers.
In a post on Truth Social, President Trump declared, "Our deal with China is done," although it remains subject to final approval from him and Chinese President Xi Jinping. President Trump emphasized that the agreement includes the provision of essential raw materials such as rare earth elements, stating that China would supply these resources upfront. The United States, in return, would adhere to its commitments, including allowing Chinese students to study in American colleges and universities—a move he supports.
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The new agreement outlines a 55% tariff for the U.S. and a 10% tariff for China, signaling a potential shift in trade relations between the two nations. The "relationship is excellent," Trump asserted, despite previously voicing concerns over China's compliance with earlier trade agreements.
This announcement comes on the heels of a significant meeting earlier this week in London involving U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. trade representatives with their Chinese counterparts. According to President Trump, this meeting has led to meaningful progress in repairing and enhancing U.S.-China relations.
In addition to the trade news, the economic landscape was further influenced by the release of the latest consumer price index, which reported a 2.4% inflation rate for the 12-month period ending in May, a decrease from the higher rates seen earlier this year. Economic analysts noted that this figure is favorable compared to inflation rates of 8% and 9% observed in 2022 and aligns closely with the Federal Reserve’s target of 2% inflation.
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As the markets react to these developments, observers anticipate that both the trade agreement and inflation report will play crucial roles in shaping economic sentiment in the coming days.
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