- Trump announced that China will supply rare earth materials to the US upfront.
- In exchange, the US will permit Chinese students to attend American colleges.
- The deal is pending final approval from Trump and China's President Xi Jinping.
US President Donald Trump on Wednesday said that, as a part of a trade agreement, China will supply rare earths upfront to the United States, and also permit visas for Chinese students.
In a Truth Social post, Trump announced that Beijing will supply United States with "full magnets and all necessary rare earth materials." In exchange for this, United States will let Chinese students study at American colleges and universities.
“Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent! Thank you for your attention to this matter!” Trump wrote on Truth Social.
In May, it was because of rare earths, that the tariff truce between the two countries had derailed.
Earlier today, China's vice premier said that Beijing was ready to "strengthen cooperation" with Washington.
US and Chinese officials said on Tuesday they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade tensions.
US Commerce Secretary Howard Lutnick had also told reporters that the framework deal puts "meat on the bones" of an agreement that was reached last month in Geneva to ease bilateral retaliatory tariffs that had reached triple digits.
The deal comes in the backdrop of talks in London, where rare earth exports were the major point of talk. However, Trump has said that the agreement is subject to final approval by him and President Xi Jinping.
