LONDON: Former US President Donald Trump has announced the finalisation of a new trade agreement with China that will see the United States secure access to rare earth minerals and magnets — key materials used in electronics, renewable energy, and defence. The deal, finalised after high-level negotiations in London this week, also raises tariffs on Chinese imports to 55%.
Trump confirmed the agreement via social media, stating simply, “Trade deal with China is done.” The announcement marks a continuation of the trade framework initially discussed during talks in Geneva last month and signals a renewed effort by both nations to stabilise economic relations.
As part of the terms, the United States has agreed to resume issuing student visas for Chinese nationals to attend American universities. This concession, Trump said, was “part of what was agreed to” in earlier discussions.
Chinese state news agency Xinhua reported that the negotiations were “reasonable” and “frank,” with both parties pledging to uphold mutual commitments. The report emphasised that China expects both sides to honour their promises, implement agreed measures faithfully, and show integrity in fulfilling the terms.
The rare earth supply deal is being closely watched by global markets, as these resources are critical to the production of high-tech and green technologies. China currently dominates global production of these materials, making the agreement significant for American industry and defence planning.
The 55% tariff increase on Chinese imports, however, may prompt further tensions. Analysts suggest the move could impact consumer prices in the US but is being used as leverage to reinforce trade discipline.
The finalisation of this deal is seen as a strategic balancing act between economic cooperation and competition, as both nations navigate a complex global trade environment.
