Donald Trump on Wednesday announced that the United States will receive magnets and rare earth minerals from China under a new trade deal agreed upon by the two countries. In return, tariffs on Chinese goods will rise to 55%, and students from the Asian nation will continue to attend U.S. higher education institutions. The world’s two largest economies stated that they have agreed on a framework to get their trade negotiations back on track after a series of disputes that had threatened to derail them.
According to Trump, the relationship between the two countries is now “excellent” after more than two months of a bitterly fought tit-for-tat tariff war. The two sides concluded two days of talks in London on Tuesday, which appeared to focus on resolving disputes over mineral and technology exports—issues that had shaken the fragile trade truce reached in Geneva last month.
“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 (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!” Trump wrote on Truth Social.
The deal reportedly outlines a 10 per cent baseline "reciprocal" tariff, along with a 20 per cent tariff targeting fentanyl trafficking, and a 25 per cent tariff accounting for pre-existing duties. In response, China would impose a 10 per cent tariff on imports from the U.S.
U.S. Commerce Secretary Howard Lutnick told reporters that the framework deal adds “meat on the bones” of an agreement reached last month in Geneva, aimed at easing bilateral retaliatory tariffs that had soared into triple digits. According to news reports, the deal follows talks held in London, where rare earth exports emerged as a key discussion point. However, Trump has stated that the agreement still requires final approval from both him and President Xi Jinping.
Earlier reports had indicated that after Beijing imposed new limitations on the export of key minerals, the Geneva Accord had stalled. This prompted the Trump administration to respond with its own export controls, including restrictions on the export of semiconductor design software, aircraft, and other “sensitive goods” to China.
