President Donald Trump announced Wednesday morning that a new U.S.-China trade agreement, negotiated in London earlier this week, is “done.”
Talks resumed after the May 12 trade truce between the two countries collapsed, with each side accusing the other of failing to uphold the terms of the agreement. The new deal restores the earlier framework while addressing ongoing disputes around rare earth elements, according to Trump and other U.S. officials.
“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,” Trump posted on Truth Social.
In April, China imposed export controls on several rare earth elements used in weapon systems, cars, and other advanced technologies, raising concern among policymakers and industry leaders who warned of severe supply chain disruptions.
Between 2020 and 2023, the communist country was responsible for 70% of rare earth metal imports to the U.S, according to a January report from the U.S. Geological Survey. China possesses approximately 44 million tons of rare earth reserves, compared to just 1.9 million tons in the U.S.
Trump added that under the new agreement, the U.S. will maintain a 55% tariff rate on Chinese imports, while China will impose a 10% rate on American goods.
The deal follows a steep 35% year-over-year decline in Chinese exports to the U.S. in May, which marked a five-year low.
Trump’s June 5 order suspending the entry of foreign nationals into Harvard University had triggered concern among higher education institutions dependent on international tuition. However, Trump stated that American universities could continue accepting Chinese international students under the new agreement.
“WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” he posted.
This move follows the arrest of a second Chinese national affiliated with the University of Michigan on Monday for allegedly smuggling biomaterials into the country and lying to officials.
Further details on the London agreement are expected to become clear when Treasury Secretary Scott Bessent, who took part in the negotiations, testifies before the House Ways and Means Committee on Wednesday.
Meanwhile, a federal appeals court on Tuesday night ruled that the Trump administration could continue enforcing its “Liberation Day” tariffs on imports from most countries while it considers a lower court’s ruling invalidating them.
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