Trump Declares US-China Rare Earths Deal “Done” Pending Final Nod
In a significant development in US-China trade relations, US President Donald Trump has declared that a new bilateral deal with China is “done,” subject to final approval by both leaders. The announcement comes after intensive negotiations in London aimed at resolving critical disputes over rare earth supplies, educational access, and tariffs.
Trump stated:
“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 […]. We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!”
Rare Earths Supply Secured
At the heart of the deal is China’s agreement to supply full volumes of magnets and essential rare earth elements—materials crucial to the US defense, technology, and electric vehicle sectors. These critical minerals had become a major point of contention after China introduced export controls earlier this year, severely disrupting American supply chains.
The resumption of rare earth exports marks a strategic breakthrough for the US, alleviating concerns among automakers, semiconductor firms, and national security planners who rely on these materials for everything from missile guidance systems to battery technologies.
Education Exchange and Tariff Terms
In return, the United States will allow the continued entry of Chinese students into American universities, reinstating a channel of soft diplomacy and economic benefit that had been strained in recent years. The move is seen as part of a broader confidence-building effort to restore normalcy in cultural and academic ties.
On the economic front, Trump confirmed that the US will maintain a total tariff burden of 55% on Chinese imports, while China will impose a relatively modest 10% on American goods. This tariff structure is part of the framework developed after the Geneva discussions held in May, which led to a temporary 90-day trade truce.
Deal Nearing Finalisation
Although the deal is described as “done,” it awaits final sign-off from both Donald Trump and Chinese President Xi Jinping. Technical teams from both nations are expected to iron out the remaining implementation details in the coming weeks. Analysts warn that while the agreement appears promising, its durability will depend on the enforcement of export rules, transparency in trade conduct, and continued diplomatic coordination.
The development signals a potential reset in the troubled US-China economic relationship. If ratified, the agreement could de-escalate trade tensions, ensure critical material flow to US industries, and lay the groundwork for longer-term cooperation. However, its success will ultimately depend on political will, trust, and verifiable compliance from both sides.
