US President Donald Trump said a deal has been reached with China to supply US companies with rare earth metals and magnets. The agreement comes after two days of talks in London aimed at easing trade tensions between the two countries. China agreed to provide these critical materials, while the US will ease visa restrictions on Chinese students. The deal still needs final approval from both Trump and Chinese President Xi Jinping.
The talks follow a truce agreed in May, which lowered tariffs between the US and China but did not remove them completely. Since then, both sides have accused each other of breaking parts of the agreement. The recent phone call between Trump and Xi last week helped restart negotiations, which focused on trade issues including rare earth exports and visa policies.
Rare earth metals and magnets are important for making products like smartphones and electric vehicles. The US was concerned that China was slow in releasing these materials, while China criticized US controls on technology exports and visa limits for students. US officials said the new deal will put the earlier agreements back on track.
Details about tariff changes were not fully disclosed. Trump said he will set new tariff rates for other trading partners soon and plans to send letters with these terms before a July 9 deadline. US Treasury Secretary Scott Bessent said the pause on some tariffs might be extended to allow more trade talks. However, a full trade deal with China is expected to take longer.
Earlier this year, tariffs between the US and China sharply increased, with the US imposing rates as high as 145 percent. China responded with its own tariffs. The May truce lowered US tariffs to 30 percent and China’s to 10 percent. Both sides gave themselves 90 days to work on a lasting agreement. Despite the truce, disagreements over trade rules have continued.
Experts say the new deal is limited in scope and does not mean a full trade agreement is near. The US government is still reviewing the deal, and talks with other countries are ongoing. Trade policies and tariffs are expected to remain important tools in the coming months.
