Closing post
Time to recap…
Donald Trump has endorsed the US-China trade deal struck in London that will ramp up supplies of rare earth minerals and magnets needed for the automotive industry, saying it will take total tariffs on Beijing to 55%.
Acknowledging that his Chinese counterpart, Xi Jinping, still needed to give his final approval on the terms agreed late on Tuesday night at Lancaster House, the US president disclosed the pact would also facilitate Chinese students’ access to US colleges.
Posting on his Truth Social site, Trump says:
OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. 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!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!
To use a technical term, I believe this is known as "making it up as you go along" pic.twitter.com/JXG95Xjsod
— David Henig 🇺🇦 (@DavidHenigUK) June 11, 2025
The 55% tariff total appears at first glance to be a hike from the 30% rate agreed in the truce struck early last month when both sides slashed triple-digit rates. However, a White House official said it merely reflected Trump’s worldwide 10% baseline “reciprocal” tariff on imports, the 20% fentanyl trafficking levy and a 25% pre-existing tariff on China.
Trump also posted that he and president Xi will “work closely together to open up China to American Trade”.
Trump was speaking (or posting) after the US and China extended the truce in their trade war after two days of talks in London that resulted in a “framework” deal over export restrictions on rare earths and semiconductors.
But, there are reports tonight that China is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers.
US prices continued to rise in May as companies and consumers grappled with Donald Trump’s tariffs. The president has repeatedly pledged to lower costs across the economy.
Annualized inflation ticked higher to 2.4% in May, up from 2.3% in April. On a month-to-month basis, the consumer price index rose by 0.1%, down from 0.2% the previous month.
The readings were softer than expected. Economists had expected a headline CPI reading for 2.5% in May, amid widespread uncertainty over the direction of the US economy.
Core inflation, which measures price increases outside of food and gas, went up 0.1% on the month, down from 0.2% in April, according to the Bureau of Labor Statistics.
In other news…
The FTSE 100 has ended the day close to its record closing high.
Chancellor Rachel Reeves has outlined the UK government’s spending plans for the next three years
WSJ: Beijing puts six-month limit on its ease of rare-earth export licenses
The Wall Street Journal is reporting that China is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers, according to people familiar with the matter.
This will give Beijing leverage if trade tensions flare up again, but also creates lingering uncertainty for American industry.
The WSJ reports:
Chinese negotiators agreed to the temporary restorations of the licenses after the latest round of talks with their American counterparts in London after two days of intense talks, aimed at upholding an interim agreement forged in Geneva last month.
In exchange, the people said, the U.S. negotiators agreed to relax some recent restrictions on the sale to China of products such as jet engines and related parts as well as ethane, a component of natural gas important in manufacturing plastics.
Details of the framework are still being worked out, the people said. The White House declined to comment.
Beijing wants to keep its chokehold on the supply of such critical commodities for future negotiations, according to people who consult with senior Chinese officials.
