Trump Declares Rare Earths Agreement with China ‘Done’

(The Post News)– President Donald Trump announced a preliminary trade deal with China that could ease mounting tensions between the two global superpowers and restore the flow of critical rare earth minerals to U.S. companies.

Trump made the announcement via a post on his Truth Social platform, declaring the deal “done, subject to final approval” from both himself and Chinese President Xi Jinping. The agreement would see China resume exports of rare earth metals and magnets, while the United States would walk back plans to revoke rejection of student visas for Chinese nationals.

The deal follows two days of high-stakes negotiations in London, where senior U.S. and Chinese officials worked to defuse a conflict that has disrupted global supply chains and rattled financial markets.

The negotiations primarily addressed U.S. concerns over China’s slowdown in the export of rare earth materials—crucial components in technologies like electric vehicles, smartphones, and advanced military systems. Washington has accused Beijing of weaponising its dominance in rare earths, a market it overwhelmingly controls.

China, in turn, criticized the United States for imposing technology export controls and proposing visa restrictions on Chinese students, many of whom are studying science and engineering at U.S. institutions.

Commerce Secretary Howard Lutnick confirmed that both countries reached a framework to implement previous agreements, including the “Geneva consensus” reached earlier this year. He said the London talks “cleaned up” earlier ambiguities and positioned both sides to move forward. China’s Vice Commerce Minister Li Chenggang echoed the sentiment, saying both nations had reached a “framework for implementing the consensus” built from earlier leadership-level discussions.

Despite the optimistic rhetoric, the agreement falls short of a comprehensive trade deal. It leaves in place many of the tariffs introduced during a months-long trade war that escalated rapidly before a partial truce in May. Analysts say the deal represents a strategic but narrow breakthrough. It addresses immediate concerns around rare earth access and student visas but leaves deeper structural issues such as intellectual property protections and tech sector competition unresolved.

According to a senior analyst at the Center for Strategic Trade Studies, both parties are managing the situation rather than resolving it; thus, it is progress but not resolution. Meanwhile, Trump signaled that his administration will continue leveraging tariffs as a negotiating tool. He plans to set new unilateral tariff rates for trading partners within the next one to two weeks and will issue letters detailing deal terms ahead of a July 9 deadline.

Treasury Secretary Scott Bessent told Congress that the U.S. will extend a pause on some of its most aggressive tariffs to give other nations more time to negotiate. However, he warned that only countries negotiating “in good faith” would receive such extensions.

“It is highly likely we’ll roll forward the deadline for negotiating partners, including blocs like the EU,” Bessent said. “But if countries stall or refuse to engage, we will not hesitate to reimpose tariffs.”

While the rare earths agreement lowers the temperature, key sources of tension remain. China continues to protest U.S. restrictions on access to advanced semiconductors and artificial intelligence-related technologies. The Trump administration’s policy of tightening export controls, particularly in defense-adjacent industries, remains unchanged.

Officials on both sides have acknowledged that the current agreement is just a starting point. A broader, more durable trade settlement will require sustained negotiations and political will. “This is not a final destination,” Bessent said. “It’s a checkpoint along a longer journey.”

The preliminary agreement provides a window of stability, offering businesses and investors some short-term reassurance. However, with significant disagreements still unresolved and both governments navigating domestic political pressures, the path to lasting economic cooperation remains uncertain.

For now, the rare earths deal reflects a fragile thaw in a complex and ongoing standoff, one that continues to shape the global economic order.