'RELATIONSHIP IS EXCELLENT': US-China finalise trade deal, Trump announces | From tariffs to rare earths - All details inside

After weeks of US-China trade war, US President Donald Trump on Wednesday (June 11) announced that they have reached a deal with China, subject to final approval with Chinese President Xi Jinping.

Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.

In return, the US will provide to China with what was agreed to, "INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," the US president said.

"OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump announced.

Talking about the tariffs on China and the US, Trump said the US is getting a total of 55% tariffs, while China is getting 10%.

"WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!," he added.

Earlier on Tuesday, top officials from the United States and China said they reached an agreement on a “framework” after two days of high-level trade talks in London.

US Commerce Secretary Howard Lutnick expressed optimism, saying that concerns regarding rare earths “will be resolved.”

While, China International Trade Representative Li Chenggang separately told reporters, “Our communication has been very professional, rational, in-depth and candid.” He expressed hope that progress made during talks in London would help boost trust between both sides.

US-China trade war

Tensions between the US and China began when Trump signed an executive order imposing a 10 per cent tariff on Chinese imports, on February 1.

Days later, China strike back, imposing a 15 per cent tariff on US coal and LNG, and a 10 per cent tariff on crude oil, large vehicles, and farm machinery. Moreover, it also brought in export controls on key rare earth minerals, such as molybdenum and tellurium.

The trade war escalated as the two countries began rising the tariff numbers. Later in April, Trump upped the pressure again as he hiked the tariffs first to 104 per cent, then 125, and finally to 145 per cent. China struck back with its own 84 per cent levy. By 11 April, China raised its tariffs to match the US at 125 per cent.