Trump Announces Rare Earths Deal with China Amid Ongoing Trade Tensions

U.S. President Donald Trump said Wednesday that the U.S. has reached a deal with China on rare earth minerals, signaling a potential step forward in efforts to ease ongoing trade tensions between the world’s two largest economies.

Writing on his Truth Social platform, Trump said the deal is “done, subject to final approval from President Xi and me.” Under the agreement, China would supply U.S. companies with magnets and rare earth materials, while the U.S. would ease some visa restrictions on Chinese students.

The announcement followed two days of high-level negotiations in London. It marks the first notable development since a temporary truce was struck in May, when both countries agreed to roll back newly imposed tariffs that had severely disrupted bilateral trade.

However, few details of the agreement were made public, and officials on both sides have acknowledged that a broader trade deal remains a work in progress.

U.S. Commerce Secretary Howard Lutnick confirmed that a framework was reached to implement the earlier Geneva consensus, adding that the latest talks had “cleaned up” the prior agreement. Chinese Vice Commerce Minister Li Chenggang said the two sides had reached a “framework for implementing the consensus” from earlier discussions.

U.S. Treasury Secretary Scott Bessent, testifying before Congress, said that while progress was made, the broader negotiations would take more time. He added that the administration is willing to extend its current 90-day pause on certain tariffs for countries engaged in good-faith negotiations.

The latest talks were reportedly sparked by U.S. concerns over delays in Chinese exports of rare earths, critical materials used in products ranging from smartphones to electric vehicles. China, in turn, has pushed back against U.S. restrictions on semiconductor technology and limits on Chinese student visas.

Despite the announcement, markets reacted cautiously, with analysts noting the agreement’s limited scope. Trade expert Terry Haines called the outcome “the smallest of accomplishments,” saying it did not signal a major shift in U.S.-China relations.

The White House said Trump is reviewing the deal’s final details, and both sides are expected to move toward implementation following presidential approval.