On June 11, 2025, official statements confirmed that U.S. President Donald Trump and Chinese President Xi Jinping reached a conditional trade agreement after two days of negotiations in London.
China agreed to resume immediate shipments of rare earth minerals and magnets to the United States. In exchange, the U.S. will allow Chinese students to enroll in American colleges and universities, reversing earlier plans to restrict student visas.
The agreement maintains a 55% tariff on Chinese imports to the U.S., composed of existing, fentanyl-related, and baseline tariffs. China will keep a 10% tariff on U.S. goods. Both leaders must still give final approval before implementation.
The deal follows a failed truce in May, when China’s restrictions on rare earth exports triggered production halts in global industries, including European auto and semiconductor factories.
In May 2025, China’s rare earth exports surged 23% to 5,864.6 tons, the highest monthly volume in a year, despite ongoing controls. Commerce Secretary Howard Lutnick stated that the agreement addresses U.S. concerns about China’s export limits and aims to gradually lift mutual restrictions.
The deal also builds on a Geneva framework from the previous month, which had stalled over rare earth and technology issues. Both sides signaled that direct talks between Trump and Xi were crucial for progress.
This agreement matters because rare earths are essential for manufacturing electronics, vehicles, and defense systems. The U.S. relies heavily on Chinese supply.
The student visa provision supports American universities and strengthens economic ties. The deal does not resolve all disputes, but it offers temporary relief for businesses and restores critical trade flows, pending final approval.
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