WASHINGTON (AP) — President Donald Trump announced that the United States will get magnets and rare earth minerals from China under a new trade framework and that tariffs on Chinese goods will total 55%.
In return, Trump said, the U.S. will provide China “what was agreed to,” including allowing Chinese students to attend American colleges and universities. The Republican president had recently begun to clamp down on the presence of Chinese nationals on U.S. college campuses.
What Trump described as a “deal” actually is a framework to help the U.S. and China eventually negotiate a sought-after trade agreement, which Trump intends to do with numerous countries but so far has been unable to execute on as quickly as he promised the public he'd be able to.
So far, Trump only has announced the terms of a deal with the United Kingdom.
A White House official, who was not authorized to discuss the terms publicly and insisted on anonymity to describe them, said the 55% was not an increase on the previous 30% tariff on China because Trump was including other pre-existing import taxes.
“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME.,” Trump wrote Wednesday on his social media site.
He said full magnets and any necessary rare earths will be supplied up front by China.
“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” Trump wrote.
A Chinese statement on the talks did not reveal any details or concrete steps.
In a follow-up social media post, Trump said he and Xi “are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!”
Senior U.S. and Chinese negotiators announced late Tuesday in London that they had agreed on a framework to get their trade negotiations back on track after a series of disputes that threatened to derail them.
The announcement came at the end of two days of talks in the British capital that wrapped up late
General Motors shares rise on $4 billion investment to move plants from Mexico to US
Trump signed executive orders in April relaxing some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers. Trump portrayed the changes as a bridge toward automakers moving more production into the United States.
But automakers and independent analyses say the remaining tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Last month GM lowered its profit expectations for the year, estimating the impact of remaining auto tariffs at $5 billion for the company.
GM said it will add production of the gas-powered Chevrolet Blazer and Chevrolet Equinox, which are made in Mexico, to its plants in Spring Hill, Tennessee and Kansas City, Kansas in 2027. GM will also begin making gas-powered full-size SUVs and light duty pickup trucks in Orion Township, Michigan.
CEO Mary Barra said Tuesday that GM is committed to building vehicles in the U.S. through 50 U.S. plants and parts facilities that support nearly 1 million American jobs.