Trump confirms rare earth deal with China, eases student entry restrictions

[Ben Graham]

President Donald Trump announced on Wednesday that the US and China have reached a deal under which Beijing will supply magnets and rare-earth minerals, while American colleges and universities will once again admit Chinese students.

“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” Trump wrote on Truth Social.

A White House official told Reuters the US will impose a 55% total tariff on imported Chinese goods, including a 10% baseline “reciprocal” tariff, a 20% levy related to fentanyl trafficking, and 25% from pre‑existing tariffs. China will respond with a 10% tariff on US imports.

“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!)” Trump added.

He emphasized that both he and Chinese President Xi Jinping must formally approve the framework, which reflects recent London negotiations meant to revive the Geneva tariff truce from last month.

Officials from both countries plan to finalize the agreement after outbound materials begin flowing.

However, while the new terms restore supply lines and student exchanges, they leave unresolved core issues, including China’s trade surplus and broader structural imbalances.

Between 2020 and 2023, China accounted for 70% of US rare earth imports, making it by far the country’s top supplier. Malaysia, Japan, and Estonia round out the top four.

China produces around 90% of the world’s refined rare earths and is home to the largest capacity for separation and purification, giving it a chokehold on global supply chains.

These elements are essential in military applications, electric motors, and next-gen electronics. Companies like Lockheed Martin, Tesla, and Apple rely on these materials in their core products.