U.S. Stocks Close Lower as Trump Reveals China Trade Deal
(MENAFN) US equities closed lower midweek after President Donald Trump revealed a new trade agreement with China following high-level negotiations between the world’s two largest economies in London.
The S&P 500 dropped 0.27%, losing 16.57 points to settle at 6,022.24. The Nasdaq Composite fell by 0.50%, down 99.11 points, ending the day at 19,615.88.
The Dow Jones Industrial Average remained mostly steady, slipping just 1.10 points to close at 42,865.77.
Trade talks wrapped up in London on Wednesday, with Trump declaring that the deal “is done,” pending final approval from both presidents.
In a post on his Truth Social platform, Trump stated the US “is getting a total of 55% tariffs, China is getting 10%.”
"Full magnets, and any necessary rare earths, will be supplied, up front, by China," he said, further adding, "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!)."
“Relationship is excellent!” he concluded.
Trump later affirmed that he and Chinese President Xi Jinping “are going to work closely together to open up China to American Trade.”
“This would be a great WIN for both countries!!!" he emphasized.
US and Chinese officials held meetings in London this week focusing on tariff disputes.
Earlier this year, the US introduced steep tariffs on China in April, but both countries agreed to a broad rollback of these punitive measures for an initial 90-day period starting in May.
On the economic front, US consumer inflation for May came in below expectations, registering 2.8% year-over-year and 0.1% month-over-month.
The US federal budget deficit narrowed by 9% year-on-year to $316 billion in May, driven by a surge in customs duty revenues, which soared 340% to $22 billion.
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