Trump Hails ‘Done Deal’ with China: Rare Earths for US, Student Access in Return
President Trump announced on June 11 a preliminary trade framework with China in which Beijing will supply magnets and rare earth minerals, and the United States will allow Chinese students to study at American universities. The agreement includes a total US tariff of 55% on Chinese goods—including a baseline 10%, a 20% fentanyl-linked tariff, and 25% from existing levies—while China will apply a 10% tax on US imports. The deal awaits final approval by both presidents.
The pact follows two days of intense negotiations in London and builds on a Geneva truce aimed at reducing retaliatory tariffs that once reached triple digits. US Commerce Secretary Howard Lutnick described the talks as adding “meat on the bones” to the prior truce by addressing previously stalled export curbs.
Trump confirmed the deal on Truth Social, declaring the relationship “excellent.” He stated China will provide “full magnets, and any necessary rare earths” upfront, and in return, the US will welcome Chinese students to its colleges and universities. Finalization is conditional on approval by both leaders.
The agreement targets the rare earths sector, crucial for electric vehicle motors, defense systems, and consumer electronics. China holds a near-monopoly here. US firms have faced supply uncertainty since export restrictions were imposed earlier—a key driver of the compromise.
US markets reacted cautiously; analysts say this framework avoids new tariff escalations but fails to address enduring structural concerns such as industrial subsidies, technology access, and intellectual property protections. A report from Reuters noted that while the deal pauses tariff hikes, it offers few specifics on broader trade reforms.
This deal follows recent US measures to tighten immigration and tech export controls. Just weeks ago, the administration aggressively revoked student visas for Chinese nationals studying sensitive subjects and restricted the export of semiconductor design tools.
While the framework directly benefits China’s rare earth sector and US academic institutions, critics warn the absence of long-term safeguards could leave both nations vulnerable to future discord. Both Trump and Xi are expected to finalize the pact ahead of the August 10 deadline to prevent tariff re-imposition.
