President Donald Trump announced the completion of a trade deal with China that includes increased tariffs on imports and exports between the two countries.
Completion of Trade Deal
In a post on Truth Social, Trump stated: "OUR DEAL WITH CHINA IS DONE". He clarified that the agreement is complete, pending signatures from both him and President Xi Jinping.
Impact on Global Economy
Following two days of talks in London, U.S. Commerce Secretary Howard Lutnick reported that the new agreement "puts meat on the bones" of the previously reached understanding in Geneva. However, the World Bank warns that high tariffs and uncertainty pose a significant headwind for most economies.
Outlook for US-China Relations
European Central Bank President Christine Lagarde stated in Beijing that lasting peace would require policy changes on both sides to correct financial imbalances.
The US-China trade deal marks a significant move, although it does not address key issues of tariffs and China's export system. The evolution of relations will depend on policy changes from both countries.
