Trump Secures Rare Earth Minerals Deal with China in London
President Trump declared that America has struck a deal with China following two days of negotiations in London. According to him, China had agreed to provide US companies with the magnets and rare earth metals they desperately need. “Our China deal is completed, pending final approval by President Xi and me,” Trump posted on his social media platform on Thursday.
The agreement followed American businesses rapidly exhausting valuable materials. China dominates the production of the vast majority of the world’s rare earth metals and magnets used to produce everything from mobile phones to electric vehicles.
What Each Side Gets
As per this deal, China will provide rare earth metals and magnets to American companies. America, in turn, will desist from threatening to revoke visas of Chinese students who desire to study in America.
According to Trump, the cumulative tariff on Chinese products will be 55%. However, White House officials clarified that the figure involves previous tariffs during his initial presidency and not new tariffs alone.
Commerce Secretary Howard Lutnick said the negotiations “cleaned up” issues from a previous deal struck in Switzerland back in May. “We’re completely on the right track,” he said to reporters. “Things feel really good.”
Why This Deal Occurred
The negotiations began because China was moving too slowly to deliver materials that American manufacturing plants require. Companies that produce cars, phones, and other items were getting low on stock.
Meanwhile, China was angered that America was restricting its access to computer chips and artificial intelligence technology. They also disapproved of Trump’s proposals to cut Chinese student visas.
Both nations have been exchanging blows with high tariffs ever since Trump initiated a fresh trade war this year. In May, they signed a short-term truce that was to last for 90 days.
Deal Still Needs Final OK
The deal is not entirely finalized yet. Both Xi Jinping and Donald Trump still have to sign off on it. Treasury Secretary Scott Bessent explained that the deal only addresses some very particular matters. A greater trade deal would take much longer to negotiate.
White House press secretary Karoline Leavitt stated that Trump is still going through all of the details. “But what the president heard, he liked,” she continued.
More Deals Coming Soon
Trump indicated that he would make announcements of tariff rates on other countries within the next week or two. He is going to send letters to various nations regarding new trade agreements ahead of a deadline on July 9.
The markets did not respond much to this China news. Experts explained that the agreement is quite narrow and does not address the larger issues between the two nations.
But for now, American companies should be able to get the materials they need to keep making products.RetryClaude can make mistakes. Please double-check responses.
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