President Donald Trump and officials from China announced that they have agreed on a framework for a trade deal between the two major economic powers.
The announcement came after two days of intense negotiations in London, aimed at resolving a near halt in trade between the countries following Trump's imposition of 145% tariffs on Chinese imports. Trump's tariffs roiled global markets, costing companies tens of billions of dollars in lost sales and higher costs.
U.S. stock futures were lower while investors were awaiting details of a U.S.-China trade deal. Futures linked to the blue-chip Dow Jones Industrial Average fell 0.19%, while broad S&P 500 futures dropped 0.20% and tech-heavy Nasdaq futures slipped 0.20%.
Here's what to know about the current deal.
Trump's newest trade deal with China
"Our deal with China is done," Trump announced on social media on June 11. He stated that the United States would impose a 55% tariff on Chinese imports, while China would impose a 10% tariff on U.S. imports.
Trump said Chinese students would be allowed to attend U.S. colleges and universities, which he said “has always been good with me.” And China will supply rare earths that are key to manufacturing technology, he said.
What were tariffs on China like before Trump took office?
Prior to President Trump's return to the Oval Office, tariffs between China and the United States had hovered between 10% and 20% for the past seven years. The current tariffs the United States has imposed on China are approximately 596% higher than at the beginning of the year.
According to the Peterson Institute for International Economics , a nonprofit research organization, the United States currently has a tariff rate of 124.1% against Chinese goods. On Jan. 1, 2025, tariffs were only 20.8%. When President Trump ended his first term, tariffs on Chinese goods were 19.3%.
Looking at the same timeline, Chinese tariffs against U.S. goods now sit at 147.6%. At the beginning of the year, tariffs were 21.2%, 0.4% higher than U.S. tariffs. When Trump ended his first term, Chinese tariffs against the U.S. were 21.2%, 1.9% higher than the U.S.
Throughout former President Joe Biden's term, tariffs against China only increased twice, whereas tariffs against the U.S. increased once after going down. Tariffs against China sat at 19.3% for most of Biden's term, increasing to 19.9% near Sept. 27, 2024, and 20.8% near Jan. 1, 2025.
Tariffs from China against the U.S. were set at 21.2% around July 1, 2020, and dropped to 21.1% around May 1, 2021. China then increased back to 21.2% around Jan. 1, 2025.
While China did impose higher tariffs on goods from the United States, it did so on fewer products.
Between Sept. 1, 2019, and Feb. 4, 2025, only 50.3% of U.S. exports were subject to Chinese tariffs. During the same time frame, 66.6% of Chinese exports were subjected to U.S. tariffs until President Trump increased them to 100% in early February.
USA TODAY contributed to this report.
This article originally appeared on Memphis Commercial Appeal: Trump says China trade deal is done: How have tariffs changed