U.S. President Donald Trump took to his social media platform, Truth Social, on Wednesday to proclaim that a deal with China was “done,” pending final approval from himself and Chinese President Xi Jinping.
The post followed days of trade talks in London, where Washington and Beijing tried to save an uneasy truce in their budding trade war, threatened by complaints about export controls and visa revocations.
Trump announced that the U.S. would charge a 55% tariff on Chinese goods, while Beijing would impose a 10% tariff on U.S. goods. He also proclaimed that China will continue to export magnets and rare earth materials, while the U.S. would allow Chinese students to continue studying in the U.S.
Still, Asian markets weren’t thrilled by the news that a deal had, once again, been reached. Hong Kong’s benchmark Hang Seng Index closed down by about 1.4%, while Japan’s Nikkei 225 dropped by about 0.65%. China’s CSI 300 was essentially flat.
One reason for the chilly reception could be that China only officially commented on the deal in the late-afternoon Thursday, Asia time. Lin Jian, a foreign ministry spokesperson, said at a regular press briefing that both sides should “abide” by the consensus reached following the latest meetings in London. Lin also said China has always kept its word and delivered results.
