Trump says deal 'done' for China to supply rare earths, easing trade tensions

Trump announces trade deal with China securing rare earth supply, student exchange agreement, and reduced tensions after London talks.

US President Donald Trump on Wednesday announced significant progress in trade negotiations with China, unveiling a new agreement under which Beijing will supply the United States — the world’s largest economy — with “magnets, and any necessary rare earths.”

Rare earth elements are crucial for a range of high-tech industries, and China currently dominates global supply. The new agreement signals a potential easing of trade tensions between the two major economic powers.

This development comes on the heels of two days of talks in London, where the issue of rare earth exports was a key sticking point. Trump stated that the deal — still pending final approval from both himself and Chinese President Xi Jinping — also includes a provision allowing Chinese students to continue their education in US institutions.

“Our deal with China is done, subject to final approval with President Xi and me,” Trump said in an online post.

“Full magnets, and any necessary rare earths, will be supplied, upfront, 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!”

The announcement followed two days of meetings in London that concluded late Tuesday. These discussions focused on resolving disputes over mineral and technology exports that had threatened a fragile trade truce established last month in Geneva.

Despite the new agreement, it remains unclear whether any meaningful progress was made regarding deeper disagreements, particularly over China’s substantial trade surplus with the United States.

Tensions between the two countries have also flared over advanced semiconductors used in artificial intelligence, Chinese students at US universities, and rare earth minerals — critical resources for the automotive sector and other industries.

Trump and Xi had a phone conversation last week in an effort to ease tensions.

Li Chenggang, vice minister of commerce and China’s international trade representative, confirmed that both nations had agreed in principle to a framework for implementing the Geneva consensus.

The ongoing trade dispute between Washington and Beijing has continued to escalate since Trump launched a trade war in February. The two countries have exchanged several rounds of tariffs, creating volatility in global markets. In a significant move, Trump increased tariffs on Chinese imports to as much as 145% in April.