Trump: “The Deal Is Done” with China on Rare Earths and Tariffs

Donald Trump says the agreement is ready. The former U.S. president announced on Wednesday, June 11, that a trade deal with China had been “concluded” and was now on the table, pending final approval by himself and Chinese President Xi Jinping.

The announcement was made on his social media platform, Truth Social, in a triumphant tone that may signal the end of a protracted economic standoff between Washington and Beijing.

According to Trump, the agreement includes the maintenance of U.S. tariffs of up to 55% on certain Chinese imports, in exchange for Chinese tariffs of 10% on American goods.

This arrangement, the former president claims, will ensure a stable supply of rare earth elements to the U.S. economy—critical materials for both the tech and defense industries.

Tariff Figures Require Clarification

The cited 55% tariff figure on the U.S. side, according to White House officials, reflects the combined effect of 30% in general tariffs imposed under Trump during the trade war, along with an additional 25% in targeted surcharges on certain technological or industrial goods.

Commerce Secretary Howard Lutnick stated that these tariff levels, which are already in effect, are expected to remain unchanged in the new agreement, with no further increases.

In other words, this is not a new tax measure, but rather a formalization of existing rates within a stabilized bilateral framework.

A Strategic Priority: Rare Earths

At the heart of the agreement lies the resumption and expansion of Chinese deliveries of rare earth elements.

These metals are essential for manufacturing:

• High-strength magnets used in wind turbine motors and electric vehicles,

• Key components in high-speed trains, satellites, radar systems, and even fighter jets.

China currently accounts for more than 70% of global rare earth refining, although other countries, such as the United States and Australia, hold significant reserves.

The announced deal is therefore intended to secure a steady supply for American industry, especially in light of recent geopolitical tensions and Chinese export restrictions that had disrupted the flow.

Mutual Concessions

In return, Trump stated that the U.S. would ease certain aspects of its visa policy, notably by allowing Chinese students to continue their studies at American universities.

Beijing, for its part, hopes Washington will reconsider some of its export restrictions on sensitive technologies—such as semiconductors, software, and military-grade equipment—an issue still under negotiation within the framework of the agreement.

The announcement follows a meeting between Chinese and American negotiators in London, where the two sides said they had reached a “general framework” for a compromise, leaving the final approval to their respective presidents.

On the Chinese side, caution prevails: no official confirmation has been issued so far, with Beijing likely waiting for written commitments or firm guarantees regarding the promised concessions.

If ratified, the deal announced by Donald Trump would represent a significant step forward in managing trade tensions between the world’s two largest economies—especially over strategic resources like rare earth elements.

Still, the agreement hinges on Xi Jinping’s approval and on both sides’ ability to strike a balance between political and technological concessions.

To be continued…