US-China agree on ceasefire in Tariff War, Beijing to supply ...., Donald Trump announces tariff cuts to...

In a development that may have far-reaching consequences for the world economy, the US and China have agreed to bury their hatchet and accept a ceasefire in the tariff war that has hit both economies. US President Donald Trump has announced that China will supply rare earth minerals and its magnets, slash its tariff on US imports to 10% while Washington will cut the tariff on Chinese goods to 55%. A present the US charges as high as 145% tariffs on Chinese imports and Beijing gas stopped supplying rare earth minerals. Rare earth magnets are used in EVs, aircraft, satellites, missiles and much other defence hardware. 

Trump wrote in a post on Truth Social, "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!" He said the deal is subject to final approval by him and President Xi Jinping. He added, "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!)." 

China's Vice Commerce Minister confirms deal

Confirming the framework deal, China's Vice Commerce Minister Li Chenggang said, "In past two days, the Chinese and U.S. teams have had in-depth exchanges. Our communication has been very professional, rational, in-depth and candid. The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting."

He added, "We hope that the progress we made in the London talks will be conducive to further increasing trust between China and the United States, to further promote stable and healthy development of China-U.S. trade relations, and to inject positive energy into world economic developments."

Back channel talks

Earlier last month, China and the US reached an agreement in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the U.S. side and from 10% to 125% on the Chinese side.

Taking to the social media platform Truth Social, Trump wrote in a post, "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!" He said the deal is subject to final approval by him and President Xi Jinping. He wrote, "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!)." 

Earlier on Tuesday, the U.S. and Chinese officials said they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade tensions. It is considered a big relief as 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.