US-China tariff: Trump says China to supply rare earths upfront under new trade deal

US President Donald Trump on Wednesday announced that China has agreed to deliver rare earth elements upfront to the United States as part of a broader trade agreement under negotiation.

Trump described the US-China relationship as “excellent” in a post on Truth Social, highlighting that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.” He also said that the agreement includes China's commitment to provide full magnets and all necessary rare earths in advance, while the U.S. will make certain concessions—such as allowing Chinese students to study at American colleges and universities.

The proposed deal still awaits final approval by both Trump and Chinese President Xi Jinping.

The announcement followed two days of high-level trade talks in London, where negotiators from both sides said they had reached a preliminary agreement.

“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” said U.S. Commerce Secretary Howard Lutnick on Tuesday.

This development comes amid mounting global concern over China's export restrictions on rare earth elements—critical materials used in sectors like defense and electric vehicles. The move had sparked tensions between the two countries.

China dominates the global rare earths supply chain, producing about 60% of the world's raw output and processing nearly 90%—making it a central player even for materials mined elsewhere.

US officials have repeatedly cautioned that China’s control over these critical resources poses a long-term strategic vulnerability, especially as the global economy shifts toward renewable energy and electric mobility.

US-China deal

The agreement comes after two days of rigorous discussions, expanding on the consensus reached during a phone conversation between President Donald Trump and President Xi Jinping on June 5, as well as talks held in Geneva. 

On Tuesday, China's Vice Commerce Minister Li Chenggang said, “The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting.”

US Commerce Secretary Howard Lutnick emphasized that the trade framework reached with China in London should be seen as a crucial first step in addressing restrictions on rare earths and magnets. 

Lutnick stated that the framework will be brought back to President Donald Trump for approval, with hopes to implement the agreement. He underscored the importance of the high-level engagement between Xi and Trump, noting that their discussion played a key role in shaping the outcome. Lutnick expressed optimism that once approved by President Trump, the new agreement will be successfully implemented.