WORLD
Deal is done, claims Trump, as US and China seem to agree on rare earths, tariffs
- IBJ Bureau
- Jun 12, 2025
Talks aimed at cooling tensions between the US and China have ended in a “deal”, according to US President Donald Trump.
He has said that China has agreed to supply US companies with magnets and rare earth metals, while the US will walk back its threats to revoke visas of Chinese students.
“Our deal with China is done, subject to final approval from President Xi and me,” Mr Trump wrote in his media platform Truth Social.
The deal followed two days of intense talks in London to resolve conflicts that had emerged since the two sides had agreed to a truce in May, after a rapid escalation of tariffs had nearly paralysed trade between the world’s two largest economies.
The Bloomberg has quoted a White House official as saying that the agreement allows the US to charge a 55 per cent tariff on imported Chinese goods, which, crucially, 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 (imposed by Mr Trump in his first term, that the Biden administration persisted with). China would charge a 10 per cent tariff on American imports, the official has added.
But the limited nature of the announcement underscored the questions the White House is facing about whether its tariff strategy can quickly yield solid trade deals.
Separately, US Treasury Secretary Scott Bessent has said that he expects that the US will extend the existing pause on some of its most aggressive tariffs to allow trade talks with other countries to continue.
Details about the new agreement with China are limited. Mr Trump and China’s leader Xi Jinping spoke over the phone last week to kickstart the negotiations, which involved top officials from both the countries.
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