President Donald Trump announced that the United States and China have reached a new trade agreement following two days of marathon negotiations in London. In a post on Truth Social, Trump described the relationship with China as “excellent” and praised the progress made toward preserving a fragile ceasefire in the ongoing trade war.
According to Trump, China has agreed to supply the U.S. with rare earth minerals and finished magnets—critical components for American industry. In return, the U.S. will allow Chinese students to continue studying at American universities.
“The deal with China is done,” Trump wrote, though he noted that final approval is still pending from both him and Chinese President Xi Jinping. “President Xi and I will work closely together to open Chinese markets to American trade,” he added.
U.S. Commerce Secretary Howard Lutnick said the talks, which lasted over 20 hours, were “on the right track.” He confirmed that China would begin approving applications for magnets from American companies immediately upon the formal approval of the agreement.
Lutnick also stated that Washington would lift certain measures once China acts, though current U.S. tariff levels on Chinese goods will remain unchanged for now.
Meanwhile, Treasury Secretary Scott Bessent told lawmakers that restoring balance in U.S.-China economic relations is possible, provided Beijing proves to be a “reliable partner” in trade talks.
Both sides had agreed last month in Geneva to reduce reciprocal tariffs. However, tensions resurfaced when Trump accused China of breaching the agreement.
The U.S. has raised concerns about supply disruptions of rare earth elements, especially after China introduced a licensing requirement for exporters in early April—a move widely interpreted as retaliation against U.S. tariffs.
Rare earths are essential to modern technologies, including electric vehicles, wind turbines, hard drives, and missile systems.
Trump confirmed that China would provide “finished magnets and every rare earth mineral needed,” while the U.S. will implement a 55% tariff on Chinese goods. Beijing, in return, has imposed a 10% tariff on American imports.
These tariff rates align with those agreed upon during the previous ceasefire, which had reduced U.S. tariffs from 145% and Chinese tariffs from 125%.