Trump and Xi Sign Trade Deal Restoring Rare Earths
President Donald Trump and President Xi Jinping signed a trade agreement establishing fixed tariff rates and restoring Chinese exports of critical rare earth minerals to the United States.
The United States and China have signed a comprehensive trade agreement to end a cycle of escalating tariffs and export controls. Donald Trump announced the deal following a series of diplomatic efforts, including a phone call with President Xi Jinping and high-stakes negotiations in London on June 9. The agreement resolves a critical dispute over rare earth minerals and magnets, which China had suspended in April, disrupting U.S. military contractors and automakers.
The final framework establishes a 55% tariff rate on Chinese imports to the U.S. and a 10% rate on U.S. imports to China. In exchange for the resumption of rare earth shipments, the U.S. will restore access for Chinese students to American universities and lift various restrictive measures. This resolution follows a failed preliminary truce in Geneva on May 12, which collapsed amid accusations of non-compliance.
Negotiations concluded at Lancaster House in London, where U.S. and Chinese officials sought concrete commitments to ease export controls. The deal was formally signed around June 24, with implementation tied to the delivery of minerals and the removal of countermeasures. The trade conflict had caused significant economic strain, including a 34.5% drop in Chinese exports to the U.S. in May and a first-quarter GDP contraction in the United States.
