U.S. tariffs on Chinese goods will rise to 55 percent, while China will supply rare earths.
President Donald Trump says the United States has reached a deal with China as both sides wrapped up their trade talks in London.
In a June 11 Truth Social post, the president confirmed that the agreement will ensure China supplies the necessary rare earths and full magnets.
In exchange, the United States will allow Chinese students to use its colleges and universities, which Trump says “has always been good with me.”
“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” the president wrote in all caps.
The deal will be subject to final approval by Trump and Chinese leader Xi Jinping.
U.S. stocks were little changed in pre-market trading after the president’s social media announcement.
China is the world’s largest producer of rare earths, accounting for approximately 60 percent of the global supply and processing around 90 percent.
In recent years, U.S. officials have expressed concern about Beijing’s grip on the international supply chain for critical minerals.
Effective April 4, China had suspended nearly all exports of a diverse array of critical minerals and magnets, triggering supply chain snafus.
Rare earth elements are crucial for industry and technological advancements, from manufacturing smartphones to building electric vehicles.
The Trump administration has pursued strategic alternatives to mitigate China’s stranglehold on critical minerals.
In addition to taking steps to bolster domestic production, the White House also established a security agreement with Ukraine to access its vast resources.
Trump and White House officials recently accused China of slow-rolling its compliance with the May 12 trade agreement reached in Geneva. This prompted a phone call between Trump and Xi, leading to Treasury Secretary Scott Bessent and others to visit London and meet with Chinese officials.
Earlier this year, the president imposed 20 percent levies on China as part of efforts to crack down on the flow of fentanyl entering the United States. At one point, the United States implemented a 145 percent tariff on most Chinese imports.
Following tit-for-tat retaliation, both sides met in Geneva and agreed to a 90-day trade truce, effectively reducing these triple-digit tariff rates.
By Andrew Moran
