Trump Confirms US-China Deal on Rare Earth Minerals, Tariffs

President Donald Trump announced a framework agreement with China to secure rare earth elements and permanent magnets, crucial for technology, defense, and clean energy sectors, while raising tariffs on Chinese goods to 55%. In exchange, the United States will allow Chinese students to attend American colleges, reversing recent restrictions on Chinese nationals on U.S. campuses. This deal, announced after high-level trade talks in London, aims to restore supply lines for these critical materials where China dominates global production and processing. Although the framework requires formal approval from both President Trump and President Xi Jinping, it could stabilize supply chains, reduce bottlenecks, and benefit industries reliant on these inputs, such as electric vehicle makers and defense manufacturers. Despite these advancements, unresolved issues like China’s trade surplus and structural imbalances remain. Additionally, concerns persist about forced labor in Chinese supply chains, particularly involving minerals sourced from the Xinjiang region, highlighting ongoing ethical and human rights challenges.