Chancellor Rachel Reeves was set to unveil her Spending Review announcements when President Donald Trump posted a major update.

Donald Trump and Rachel Reeves

Mr Trump made an important announcement at the same time as Ms Reeves. (Image: Getty)

Donald Trump has announced that a major trade deal with China is on the verge of agreement, upstaging Rachel Reeves as she was set to announce her Spending Review measures. The US president took to his social media platform Truth Social to announce the immident deal, which he said is now "subject to final approval with president Xi and me".

Mr Trump's negotiation involves magnets and rare earth materials in exchange for allowing Chinese students to study at US universities. The Republican claimed his relationship with Beijing was "excellent", despite both countries paying tariffs on one another's goods. He wrote: "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.

President Trump Visits Fort Bragg To Honor U.S. Forces

Mr Trump announced a magnet and rare earths deal with China. (Image: Getty)

"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!"

The rare earths involved in the deal are crucial for hundreds of technology products and had become a point of contention during the US and China's tariff war and subsequent truce.

Representatives from both countries announced on Tuesday that the deal had been reached after two days of high-level talks in London.

In May, they also held two days of talks in Geneva, which resulted in a deal that lowered tariffs for 90 days and loosened export controls on rare earths.

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However, this deal was thrown into chaos by a series of escalations from Mr Trump, including moving to strip Chinese students of their visas.

This latest announcement came at the same time as the Chancellor's Spending Review, in which she revealed how she will spend the Government's £600billion budget.

Total departmental budgets will grow by 2.3% per year in real terms. Defence, health and transport are set to benefit today while the Home Office, environment and the Foreign Office are set to lose out.