US President Donald Trump on Wednesday announced the finalisation of a new deal with China, under which Beijing will supply the United States with "full magnets and all necessary rare earth materials." In exchange, Chinese students will be permitted to study at American colleges and universities.
He added that under the new terms, “We are getting a total of 55% tariffs, China is getting 10%." The details of the tariff arrangement are yet to be explained and understood.
Earlier in the day, China's vice premier and top trade negotiator said Beijing was ready to "strengthen cooperation" with Washington, Chinese state media said, following trade talks in London it said had made substantial progress.
US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets "will be resolved" eventually, as the deal is implemented.
However, the proposed framework still requires approval from top leaders in Washington and Beijing, officials said after talks concluded at London’s historic Lancaster House.
Attention was focused on the outcome of the negotiations, as both sides worked to break a deadlock over export restrictions. US officials had previously accused China of deliberately delaying rare earth shipments.
The two economic giants were also aiming for a more durable ceasefire in their escalating tariff war, with current levies only paused on a temporary basis.
US Treasury Secretary Scott Bessent earlier described the closely-watched trade talks as productive, although scheduling conflicts prompted his departure from London with negotiations still ongoing.
The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs.
This time, China's exports of rare earth minerals -- used in a range of things including smartphones, electric vehicle batteries and green technology -- were a key issue on the agenda.
"In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy," US President Donald Trump's top economic adviser, Kevin Hassett, told CNBC on Monday.
Even though Beijing was releasing some supplies, "it was going a lot slower than some companies believed was optimal", he added.
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