In a significant announcement via his social media platform, Truth Social, US President Donald Trump declared that the two leading economic countries, the United States and China, have reached a preliminary agreement on a new trade deal. This agreement is currently approaching the final stages before official signing.
The terms of the deal stipulate imposing a total of 55% tariffs for US exports and a reduced rate of 10% for Chinese goods. President Trump emphasized the ‘excellent’ relationship between the two countries and assured that Chinese students will continue to have access to American colleges and universities, which he has described as ‘always being good with me.’
BREAKING: Initial details of the US-China trade deal include:
1. “Total of 55% tariffs” for US
2. 10% tariffs for China
3. Any “necessary rare earths” will be supplied by China
4. Rare earths to be supplied upfront by China
5. US to allow Chinese students to attend US…— The Kobeissi Letter (@KobeissiLetter) June 11, 2025
While the announcement marks progress in US-China trade relations, the vague terminology surrounding the ‘total of 55% tariffs’ has left investors seeking clarification on the specifics of the agreement. The deal follows just two days after trade discussions resumed in London, showcasing a rapid development in negotiations that now await the approval of both Chinese President Xi Jinping and President Trump, who appears to be satisfied with the proposed terms.
In a somewhat related development, the US Consumer Price Index (CPI) data for May was released, revealing annual inflation rates at a lower-than-expected 2.4% with a minor increase of 0.1% for the month. According to CNBC, these figures indicate that the newly imposed tariffs have not significantly impacted the US economy thus far, alleviating some concerns that had circulated in the market.
Responding to these developments, Bitcoin (BTC) experienced notable market fluctuations, initially rising from approximately $109,000 to nearly $110,000 within mere minutes. However, the cryptocurrency was unable to maintain that momentum and is currently hovering around 400 dollars away from its upper range boundary.
As the situation continues to evolve, market participants will be closely monitoring the finalization of this trade deal alongside macroeconomic indicators like inflation, which will ultimately shape both the US and global financial landscapes.
