Trump Announces Trade Deal with China, Covering Rare Earths

President Donald Trump has declared that a trade deal with China is "done," resolving tensions over rare earth exports and US export controls. The agreement, struck after two days of negotiations in London, revives a truce agreed in Geneva last month. Trump emphasized that China will supply rare earths "up front," while the US will honor commitments, including allowing Chinese students to study in American colleges and universities.
The deal addresses disagreements that had strained the Geneva agreement, particularly over rare earth exports critical to the defense, automotive, and tech industries. The US accuses China of delaying rare earth shipments, while China criticizes new US export controls on chips and technology. A senior White House official hinted that Trump could ease restrictions on chip sales to China if Beijing expedites rare earth exports, marking a shift from former President Joe Biden’s restrictive approach.
China’s vice-minister of commerce, Li Chenggang, described the talks as "rational, in-depth, and candid," expressing hope the progress would strengthen trust between the two nations. US and Chinese negotiators met at London’s Lancaster House, a neutral venue provided by the British government, to discuss broader trade issues and ensure cooperation on rare earths and technology exports.
The agreement now awaits final approval from Trump and Chinese President Xi Jinping. The deal aims to reduce tariffs by 115 percentage points and provide a 90-day window to resolve the trade conflict, though challenges remain as both sides work to implement the consensus reached in Geneva.

Published: 6/11/2025