'Rare Earths For Student Visas': Trump Unveils Landmark US-China Deal To Rebalance Trade And Tech Ties

US President Donald Trump on Wednesday announced a new trade deal with China, calling it a major breakthrough following months of tariff tensions.

Trump's post on Truth Social

Donald Trump confirmed the agreement on Truth Social, stating that China will supply the US with rare earth minerals and magnets“up front,” while the US will continue to allow Chinese students to study in American colleges and universities.

Trump also emphasised that the deal, while finalised between officials, is still subject to approval by himself and Chinese President Xi Jinping. He described the current state of US-China relations as“excellent.”

“Our deal with China is done, subject to final approval with President Xi and me,” Trump wrote.

“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” 

What the deal includes

According to Trump's post, China will lift its export restrictions on rare earth elements, which are crucial for high-tech manufacturing including electronics, defence, and renewable energy sectors. In exchange, Chinese nationals will be allowed to study at US colleges, a point Trump supported, calling it“always good with me.”

The announcement comes after two days of intense negotiations between US and Chinese officials in London. US Commerce Secretary Howard Lutnick said the framework adds“substance” to the Geneva accord reached a month ago, which had previously stalled due to China's new limits on mineral exports.

Tariff adjustments and diplomatic thaw

As per US sources, the new deal includes a complex tariff structure. The US will impose a 55% tariff on Chinese imports - broken down into a 10% baseline tariff, 20% for fentanyl trafficking, and 25% from earlier trade restrictions. In return, China will impose a 10% tariff on US imports.

Chinese Vice Commerce Minister Li Chenggang described the London talks as“professional, rational, in-depth and candid.” He added that both sides would now brief their respective leaders on the agreement.

From standoff to cooperation

The trade war between the two economic giants has disrupted global markets, strained supply chains, and caused heavy losses for businesses worldwide. However, the latest developments, including a 90-minute phone call between Trump and Xi Jinping last week, suggest a cautious return to cooperation.

This shift comes shortly after US Secretary of State Marco Rubio had threatened to revoke visas for Chinese students linked to the Communist Party or working in sensitive research fields.

Trump's latest statement now appears to soften that position, marking a significant moment in the evolving US-China relationship.

(With ANI inputs)

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