Donald Trump confirms US-China trade deal with Xi Jinping; student access maintained, but final nod still pending
Nancy Jaiswal | Jun 11, 2025, 19:26 IST
( Image credit : Indiatimes )
Donald Trump says a new trade deal has been reached with China, pending final approval. The agreement includes rare earth supply from China, continued access for Chinese students to US universities, and an updated tariff structure, with 55% on Chinese goods.
US President Donald Trump has announced a tentative trade agreement with China, resolving key issues such as rare earth supplies and student exchanges. The deal still awaits final approval from both Trump and Chinese President Xi Jinping.
Trump stated that China has agreed to resume supplying essential magnets and rare earth materials to the US. In return, the US will allow Chinese students to continue studying at American colleges and universities. The deal is described by Trump as “done” but “subject to final approval” from both leaders.
“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” Trump wrote on Truth Social. He also confirmed China will provide rare earths “up front,” while the US will fulfill agreed terms, including student access to American education institutions.
Since Trump’s second inauguration in January 2025, US-China trade tensions escalated sharply. Trump’s new “Liberation Day” tariffs added another 34% to existing tariffs, bringing the total to 54% on Chinese imports. In response, China imposed equivalent tariffs and additional export controls on rare earth elements.
Tariff levels on both sides peaked at 125%, causing significant disruptions in global supply chains and raising economic uncertainty.
Rare earth elements, crucial for sectors like defence, semiconductors, and electric vehicles, became central to the dispute. With China controlling nearly 90% of global supply and refining capacity, its early 2025 move to tighten export licensing had serious effects.
Major US manufacturers such as Ford faced production halts due to rare earth shortages. The new agreement aims to resolve this by restoring rare earth supplies, which US Commerce Secretary Howard Lutnick believes will help stabilize trade relations.
The deal also preserves student exchange opportunities, allowing Chinese students to continue their education in the US. This aspect of the deal is seen as vital for maintaining people-to-people ties.
In the past, both governments have supported education programs to enhance mutual understanding. With increasing visa issues and political tensions, this part of the agreement is seen as a stabilising step for long-term diplomatic relations.
For more news and current affairs from around the world, please visit Indiatimes News.
What’s in the Deal: Rare earths, student visas and tariffs
Trump stated that China has agreed to resume supplying essential magnets and rare earth materials to the US. In return, the US will allow Chinese students to continue studying at American colleges and universities. The deal is described by Trump as “done” but “subject to final approval” from both leaders.
“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” Trump wrote on Truth Social. He also confirmed China will provide rare earths “up front,” while the US will fulfill agreed terms, including student access to American education institutions.
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Background: Trade war reignited since Trump’s second inauguration
Since Trump’s second inauguration in January 2025, US-China trade tensions escalated sharply. Trump’s new “Liberation Day” tariffs added another 34% to existing tariffs, bringing the total to 54% on Chinese imports. In response, China imposed equivalent tariffs and additional export controls on rare earth elements.
Tariff levels on both sides peaked at 125%, causing significant disruptions in global supply chains and raising economic uncertainty.
Rare earths: The strategic flashpoint
Rare earth elements, crucial for sectors like defence, semiconductors, and electric vehicles, became central to the dispute. With China controlling nearly 90% of global supply and refining capacity, its early 2025 move to tighten export licensing had serious effects.
Major US manufacturers such as Ford faced production halts due to rare earth shortages. The new agreement aims to resolve this by restoring rare earth supplies, which US Commerce Secretary Howard Lutnick believes will help stabilize trade relations.
Student exchanges: A key link maintained
The deal also preserves student exchange opportunities, allowing Chinese students to continue their education in the US. This aspect of the deal is seen as vital for maintaining people-to-people ties.
In the past, both governments have supported education programs to enhance mutual understanding. With increasing visa issues and political tensions, this part of the agreement is seen as a stabilising step for long-term diplomatic relations.
For more news and current affairs from around the world, please visit Indiatimes News.
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