Trump says U.S.-China deal Is done, citing rare earth agreement

June 11, 2025 (MLN): President Trump declared that the United States and China have reached a trade agreement, which now awaits final approval from him and President Xi.

He emphasized that “full magnets, and any necessary rare earths, will be supplied, up front, by China.” In return, the United States will honor its side of the agreement, “including Chinese students using our colleges and universities.”

Highlighting the terms of the agreement, he noted, “We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent! Thank you for your attention to this matter!” Trump wrote this on X.

According to a White House official, the agreement allows the United States to impose a 55% tariff on Chinese imports, broken down into three parts: a 10% baseline “reciprocal” tariff, a 20% tariff for fentanyl trafficking, and a 25% tariff based on pre-existing measures.

China, in comparison, will levy a 10% tariff on goods imported from the U.S., the official added.

Both U.S. and Chinese officials confirmed that they had reached a framework agreement to revive their trade truce, with China agreeing to lift export restrictions on rare earth minerals.

However, despite progress, little was offered to suggest a long-term resolution to deeper trade tensions that have defined recent years of U.S.-China relations.

The latest breakthrough follows two days of high-level negotiations in London. U.S. Commerce Secretary Howard Lutnick told reporters the new framework “puts meat on the bones” of the preliminary deal reached in Geneva last month.

That agreement had stalled over China’s restrictions on critical minerals, which led the Trump administration to retaliate by blocking the export of semiconductor design software, aircraft components, and other essential U.S. goods to China.

Trump’s approach to tariffs, often shifting in tone and scope, has created significant disruptions across global markets.

His trade policies have triggered confusion and congestion at major ports while contributing to billions of dollars in corporate losses due to higher costs and falling exports.

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