US President Donald Trump has announced that a trade deal with China is effectively complete, pending final approval from both him and Chinese President Xi Jinping. The agreement ensures China will supply rare earth metals vital to US industries, while Chinese students can continue studying in the US.
The deal follows two days of high-level talks in London and is based on a framework to ease trade tensions. Last month, both nations had paused tariff hikes, but later accused each other of violating terms.
Trump posted on Truth Social that China would provide rare earths upfront, and the US would honor its part of the agreement, including accepting Chinese students. He also stated the US is imposing 55% tariffs, compared to China’s 10%, and described relations as “excellent.”
Rare earth exports were a key topic in the London discussions. US Commerce Secretary Howard Lutnick confirmed the deal aims to resolve China’s restrictions on these exports. Meanwhile, the US has limited China’s access to US semiconductors and AI-linked tech.
The agreement builds on a recent phone call between Trump and Xi and a Geneva meeting in May that had paused tariff escalations. However, both sides later claimed breaches: the US cited China’s restrictions on rare earth magnets, while China pointed to US tech bans and visa issues.
Ahead of the latest talks, China approved some rare earth export licenses. Trump confirmed on Friday that Xi had agreed to resume trade in these materials.
