The US President Donald Trump announced on Wednesday that China has agreed to provide a substantial supply of rare earth materials and fully assembled magnets to the United States in advance, as part of the evolving trade framework between the two nations. The arrangement, which Trump shared via a post on Truth Social, remains pending final approval by both him and Chinese President Xi Jinping.
In a significant breakthrough following two days of high-level talks in London, the United States and China have reached a preliminary trade agreement centered on rare earth elements—a critical component in defense technologies, electric vehicles, and renewable energy.
In his statement, Trump described current U.S.-China relations as “excellent” and highlighted favorable tariff terms for the United States, claiming, “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.” He added that as part of the broader agreement, the U.S. would ease restrictions on Chinese students seeking to study at American institutions.
Framework Emerges From High-Level Talks
The trade breakthrough follows a phone conversation between Trump and Xi on June 5 and subsequent negotiations in Geneva. Officials from both countries convened in London to expand on that consensus, ultimately producing a tentative agreement that lays the groundwork for future cooperation.
U.S. Commerce Secretary Howard Lutnick characterized the talks as productive and emphasized that the new framework is a crucial step toward alleviating tensions surrounding rare earth supply chains. “We have reached a framework to implement the Geneva consensus and the call between the two presidents,” Lutnick said on Tuesday.
Chinese Vice Commerce Minister Li Chenggang confirmed that the two sides had “in principle” reached a deal that builds on prior discussions between the heads of state. According to Li, the framework reflects commitments made during both the recent phone call and the Geneva meetings.
Strategic Concerns Over Rare Earth Dependence
Rare earth elements are vital to a range of industries, including aerospace, clean energy, and consumer electronics. Their strategic value has grown significantly as global economies pivot toward electric mobility and sustainability. However, China remains the dominant player in the rare earth market, producing about 60% of the world’s supply and processing nearly 90%, even for materials mined in other countries.
This overwhelming control has long been a concern for U.S. policymakers, who view it as a potential national security vulnerability. In recent years, China has tightened export controls on these resources, escalating trade tensions and prompting renewed urgency in Washington to secure alternative sources.
The new deal, if finalized, would represent a major step toward easing those concerns. By securing upfront deliveries of processed rare earths and magnets, the U.S. could reduce its immediate dependence on uncertain global supply chains.
Political and Educational Trade-Offs
While the rare earth provision stands at the heart of the agreement, it also includes other diplomatic gestures. As part of the deal, the United States will allow more Chinese students to study at American colleges and universities—an apparent effort to restore educational and cultural ties that were strained in previous years.
Commerce Secretary Lutnick expressed optimism that the framework would gain final approval soon. “This is a key step in addressing supply chain vulnerabilities and strengthening economic ties,” he said, crediting the personal involvement of both Trump and Xi with enabling the breakthrough.
Next Steps
The proposed agreement still awaits formal approval from both leaders. If finalized, it could help reset portions of the U.S.-China economic relationship, particularly in the area of technology-critical materials. For now, the framework remains a symbolic yet substantial indication that both countries are prepared to find common ground on one of the world’s most strategically sensitive resources.
The coming days will be pivotal in determining whether the initial momentum built in London translates into a lasting trade arrangement.
