President Trump announces a groundbreaking trade deal with China that significantly reshapes tariff structures while securing critical rare earth minerals for American industries.
At a Glance
- Trump declared the China trade deal “done,” pending final approval from both leaders
- U.S. tariffs on Chinese goods will increase to 55%, while China’s tariffs on U.S. goods will be set at 10%
- China will supply rare earth minerals “up front” as part of the agreement
- The deal maintains access for Chinese students to attend U.S. colleges and universities
- The agreement follows the trade framework established in Geneva last month
Trade Deal Announcement and Framework
President Trump announced a new trade agreement with China that he characterized as “done” but still subject to final approval from both leaders. The deal marks a significant development in the economic relationship between the world’s two largest economies. According to multiple reports, the agreement returns to a framework established during negotiations in Geneva last month. Chinese officials described recent follow-up talks in London as “reasonable” and “frank,” suggesting a cooperative approach to finalizing terms.
The announcement follows a 90-minute conversation between Trump and Chinese President Xi last week that focused heavily on rare earth minerals and trade terms. The deal represents a potential easing of tensions that have characterized U.S.-China relations in recent years. Previous tariffs during trade disputes had reached as high as 145% for Chinese goods and 125% for U.S. products, creating significant economic friction between the two nations.
Bullet point highlights of the US/China trade deal negotiation/framework. pic.twitter.com/0OJN1CUwpw
— HFI Research (@HFI_Research) June 11, 2025
Key Terms of the Agreement
The agreement includes several pivotal provisions that address longstanding trade concerns. Most notably, U.S. tariffs on Chinese goods will increase to 55%, while Chinese tariffs on U.S. goods will be set at 10%. This asymmetrical tariff structure represents a significant shift in trade dynamics between the two countries. Additionally, China has committed to supplying rare earth minerals “up front,” securing American access to these critical resources used in high-tech manufacturing, defense systems, and renewable energy technologies.
The rare earth component is particularly significant as these minerals are essential for American technological advancement and manufacturing capabilities. China currently controls approximately 80% of global rare earth processing capacity, making this commitment a strategic win for U.S. industrial interests. The agreement’s tariff structure, with higher rates on Chinese imports than on American exports to China, also appears designed to address longstanding trade imbalances between the nations.
Educational Policy and Foreign Students
In a notable policy clarification, Trump expressed support for Chinese students attending U.S. colleges and universities. This position appears to reverse earlier signals about potentially revoking visas for certain Chinese students. The statement comes amid a broader administration approach that has recently restricted some international students’ access to American universities and implemented new screening measures for foreign students, particularly those with ties to the Chinese Communist Party.
Despite ongoing security concerns, the agreement maintains educational exchange pathways that have historically benefited American universities financially while providing educational opportunities for Chinese students. This approach balances economic considerations with national security priorities. Secretary of State Marco Rubio had previously indicated plans to revoke visas of some Chinese students, highlighting the administration’s complex balancing act between educational openness and security concerns in managing the bilateral relationship.
