President Donald Trump on Wednesday said China would supply rare earth materials "up front" to the United States under a new trade framework he described as a "great WIN for both countries," while declaring that U.S. tariffs on Chinese goods would remain as high as 55%.
In a post on Truth Social, Trump said, "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%," and noted that the two nations had reached a preliminary agreement that now awaits final approval by himself and Chinese President Xi Jinping.
The deal, which comes after two days of high-level talks in London, includes Chinese commitments to export rare earth elements and magnets widely used in electric vehicles and defense systems. Trump added that the U.S. would reciprocate with concessions, such as allowing Chinese students to study at American colleges and universities.
"RELATIONSHIP IS EXCELLENT!" Trump posted, echoing earlier statements from U.S. Commerce Secretary Howard Lutnick, who told reporters Tuesday, "We have reached a framework to implement the Geneva consensus and the call between the two presidents." Chinese Vice Minister Li Chenggang similarly said the two sides had agreed to revive the earlier Geneva terms.
The original May deal, reached in Switzerland, briefly paused tariff escalations between the world's two largest economies and promised temporary tariff reductions and loosened Chinese export controls on rare earths. But it collapsed shortly after, with both countries accusing each other of non-compliance. The resumption of talks followed a call between Trump and Xi last week.
China's Ministry of Commerce had responded to Trump's April tariff hikes by tightening restrictions on exports of critical minerals. China accounts for roughly 60% of global rare earth production and nearly 90% of downstream processing, giving it commanding influence over the supply chain for key components used in clean energy, electronics, and military hardware.
Trump's latest post signaled that the rare earth standoff had been resolved, at least temporarily. Magnets and "any necessary rare earths" will be supplied up front, he said, without specifying quantities or timelines.
The president's tariff math-55% total U.S. duties on Chinese goods-combines multiple measures, including a 25% tariff under Section 301, a 20% penalty targeting China's role in fentanyl precursor exports, and a 10% baseline tariff announced earlier this year. A White House official confirmed the figures were cumulative, not new.
Market reaction was swift. Brent crude futures for August delivery rose $1 to $67.87, up 1.8% for the day. U.S. West Texas Intermediate for July climbed 2.2% to $66.42. Investors viewed the upfront mineral deal as a short-term win for supply chains strained by months of trade uncertainty.
Trump's prior tariff swings have rattled global markets and disrupted shipping flows, particularly after his "Liberation Day" tariff declaration in April. The administration's trade policy remains under scrutiny as negotiations continue and implementation details remain sparse.
Trump indicated the agreement will hinge on his next interaction with Xi. "President XI and I are going to work closely together to open up China to American Trade," he wrote, presenting the outcome as part of a broader diplomatic rapprochement.
