US secures Chinese rare earths in ‘done deal' as Trump revises tariffs to 55%

Indian Express

a day ago

The United States will gain access to Chinese rare earth minerals and magnets under a new trade agreement, President Donald Trump announced on Wednesday. He said the agreement would bring total tariffs on Chinese imports to 55 per cent.
While Chinese President Xi Jinping still needs to give final approval, Trump said the pact would also ease access for Chinese students to study at US universities.
Taking to his Truth Social, Trump said: 'Our deal with China is done, subject to final approval with President Xi and me … We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!'
After two days of negotiations at Lancaster House, US and Chinese officials reached a framework to revive their trade truce and roll back China's export restrictions on rare earths, the latter of which is one of the key components for US industries, including automotive, electronics, and defence. The deal, however, offered limited resolutions to broader trade issues.
Trump added: '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!)'
The London agreement follows a near-crisis for the US auto industry, which had come close to pausing production as China restricted supplies of magnets used in windshields and door mechanisms. China, which dominates the global rare earth market, imposed the curbs in April following Trump's renewed push for aggressive trade measures.
The 55 per cent tariff announced by Trump is higher than the agreed truce last month in Geneva, which had lowered tariffs to 30 per cent. However, a White House official told Reuters the agreement allows the US to charge a 55 per cent tariff on imported Chinese goods. This includes a 10 per cent baseline 'reciprocal' tariff, a 20 per cent tariff for fentanyl trafficking and a 25 per cent tariff reflecting pre-existing tariffs. China would charge a 10 per cent tariff on US imports, the official said.
US Secretary of Commerce Howard Lutnick said the London agreement added 'meat on the bones' of the earlier Geneva accord to ease retaliatory tariffs.
'It allows us to implement the Geneva pact,' Lutnick said, as per a report by The Guardian, though he stressed the deal still awaits final sign-off from both Trump and Xi.
Last month's Geneva deal had stalled over China's restrictions on critical mineral exports. The US responded by halting shipments of semiconductor design software, aircraft, and other high-tech goods to China.