US, China finalise trade deal involving rare earth supply, student access

Washington (Web Desk): The United States (US) and China have reached a trade agreement that covers tariff arrangements, rare earth mineral exports, and student access to American universities, President Donald Trump announced on Wednesday.

Although the deal still requires final approval from both Trump and Chinese President Xi Jinping, it marks a significant development in the ongoing economic relationship between the two countries.
As outlined by Trump, the US will impose a total of 55% in tariffs on Chinese imports. This includes a 10% base tariff, a 20% surcharge tied to fentanyl-related issues, and a continuation of 25% in previously established tariffs.

In return, China will apply a 10% tariff on US goods, according to a White House official. Trump emphasized the outcome on Truth Social, writing, “We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!”

A central feature of the agreement is China’s commitment to supply the United States with rare earth elements and magnets, which are essential to various high-tech and defense applications.

Trump stated that these materials would be delivered “up front” as part of the arrangement. Additionally, the United States will ease restrictions on Chinese students, allowing them to enroll in American colleges and universities once again.

On Tuesday, negotiators from both countries indicated that they had agreed on a framework to reset the trade relationship and lift Chinese export restrictions on critical minerals. However, they acknowledged that the agreement does not address deeper, long-term trade tensions that have strained bilateral ties in recent years.

US Commerce Secretary Howard Lutnick, speaking after discussions in London, said the new framework builds upon an earlier agreement reached in Geneva last month. That deal was designed to reduce retaliatory tariffs imposed by both sides during escalating trade disputes.

Previous conflicts intensified when China restricted the export of crucial minerals, prompting the US to retaliate with export controls on advanced semiconductor design software, aircraft, and other sensitive technologies.

The shifts in tariff policy over time have led to disruptions in global trade, congestion at major shipping ports, and rising costs for numerous industries.