In a major development in U.S.–China relations, President Donald Trump has announced that a deal has been reached between the two global powers regarding rare earth minerals and student visas.
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The announcement comes after two days of intense behind-closed-doors negotiations in London, marking a key milestone in efforts to de-escalate trade tensions between Washington and Beijing.
According to a report by the BBC, Trump made the declaration on his social media platform Truth Social, stating, “Our deal with China is done, subject to final approval from President Xi and me.” Under the new agreement, China will resume supplying rare earth metals and magnets to U.S. companies, while the U.S. will hold off on revoking the visas of Chinese students currently studying in the country.
These talks were part of follow-up efforts to reinforce a truce initially reached in May, which temporarily paused a series of tariff escalations that had strained trade and diplomatic ties.
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Although the latest announcement is being hailed as progress, analysts note the limited details suggest more work is needed to finalize a comprehensive trade deal.
Speaking at a press conference on Thursday, Trump emphasized his administration's willingness to set unilateral tariff rates with trade partners if necessary. He revealed that letters outlining new trade terms would be issued ahead of a July 9 deadline for reimposing global tariffs.
U.S. Commerce Secretary Howard Lutnick echoed the president's optimism, stating during a CNBC interview that the talks had “cleaned up” prior disagreements and aligned both parties toward a more functional trade framework. “We’re totally on the right track,” he said. “Things feel really good.”
China’s Vice Commerce Minister, Li Chenggang, also confirmed the breakthrough, saying the two countries had “reached a framework for implementing the consensus” formed during a phone call between Trump and Xi Jinping on June 5.
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Though the final agreement awaits formal approval from both presidents, the rare earth supply deal represents a critical turning point in U.S.–China economic cooperation. Rare earth elements are vital to modern technology, from electric vehicles to defense systems, making the deal a potential game-changer for American industries.
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