U.S. and China Reach Tentative Trade Deal on Rare Earths, Student Visas in London Talks
by Worthy News Washington D.C. Bureau Staff
LONDON (Worthy News) – The United States and China have reached a tentative agreement to ease tensions over critical minerals and export controls, following two days of high-level trade talks in London. The handshake deal, announced June 11, now awaits final approval from President Donald Trump and Chinese President Xi Jinping.
In a Truth Social post Tuesday, President Trump said the agreement would see China supply “full magnets and any necessary rare earths” in exchange for continued access by Chinese students to U.S. colleges and universities — a trade-off he called “always good with me.”
“We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!” Trump posted in all caps, expressing enthusiasm over the deal’s terms.
The framework, negotiated by U.S. Commerce Secretary Howard Lutnick and Chinese Vice Premier He Lifeng, builds on a May 12 consensus reached in Geneva. U.S. officials said it specifically addresses China’s rare earth export restrictions, which had threatened U.S. defense and tech sectors. The U.S. side emphasized that any final steps hinge on leadership approval in Washington and Beijing.
“President Trump’s got to approve it,” Lutnick told reporters in London. “The Chinese side has to take that back to their president. Once that’s done, we will be back on the phone together and will begin to start to implement this agreement.”
According to Lutnick, the deal places “meat on the bones” of the Geneva agreement by securing critical rare earth elements and easing student visa restrictions, while potentially lifting recent U.S. sanctions tied to Huawei and other Chinese firms.
The Chinese Ministry of Commerce confirmed in a statement that “a principled consensus” was reached on the implementation of prior agreements and “made new progress in resolving the economic and trade concerns of both sides.”
The talks follow months of rising trade friction, triggered by Trump’s April 2 “Liberation Day” tariff announcement. China responded with heavy duties on U.S. goods and tightened controls on rare earth exports, including samarium, dysprosium, and scandium–materials essential for aerospace and defense manufacturing.
In response, the Trump administration had escalated restrictions on Chinese tech firms and revoked student visas linked to the Chinese Communist Party. Under the new deal, those measures are expected to be lifted “in a balanced way,” according to Lutnick.
Still unclear are broader issues such as China’s trade surplus with the U.S. and semiconductor export controls. National Economic Council Director Kevin Hassett noted that while rare earth exports from China resumed in June, they remained below agreed levels.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer also attended the London negotiations. Bessent is expected to provide further details during congressional testimony on Wednesday.
Though U.S. stock markets showed little movement in pre-market trading following the announcement, analysts say the tentative deal signals a potential thaw in relations between the world’s two largest economies.
“President XI and I are going to work closely together to open up China to American Trade,” Trump posted. “This would be a great WIN for both countries!!!”
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