WASHINGTON (Diya TV) — The United States and China have reached a tentative agreement that will see China supplying magnets and rare earth minerals to the U.S..
At the same time, Chinese nationals will continue to have access to American colleges and universities, President Donald Trump announced on Wednesday.
The development marks a notable de-escalation in trade tensions following months of heightened tariffs between the world’s two largest economies. Trump declared the agreement “excellent,” noting that the U.S. would impose a total of 55% in tariffs on Chinese goods, compared to China’s 10% tariff on U.S. imports.
We are getting a total of 55% tariffs, and China is getting 10%. The relationship is excellent!”Trump wrote on his Truth Social platform, emphasizing the strength of the current U.S.-China relationship.
According to a Reuters report, a White House official clarified the composition of the U.S. tariff structure under the deal: a 10% baseline “reciprocal” tariff, a 20% surcharge for fentanyl-related violations, and an additional 25% stemming from pre-existing tariff measures. China, in contrast, will maintain a flat 10% tariff on imports from the United States.
In a follow-up post, Trump elaborated on the specifics of the agreement, stating: “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!).”
The deal is still pending final approval from both Trump and Chinese President Xi Jinping.
Rare earth elements—vital for the manufacturing of high-tech products such as electric vehicles, smartphones, and defense technologies—have long been a flashpoint in U.S.-China trade discussions. China controls more than 70% of the global supply of these minerals, giving it significant leverage in trade negotiations.
However, the agreement comes amid ongoing scrutiny over China’s sourcing practices. On the same day, an international human rights group reported that dozens of multinational companies remain at risk of using forced labor in their Chinese supply chains. The concern centers on the Xinjiang region, where human rights organizations and Western governments allege widespread abuses against the Uyghur Muslim minority.
These companies, many of which rely on critical minerals or mineral-based products, may unknowingly source materials linked to forced labor, according to the rights group’s statement. While the new U.S.-China agreement focuses on securing vital materials for American industries, it raises fresh questions about ethical sourcing and the transparency of global supply chains.
Despite the trade progress, critics argue that increased dependence on Chinese minerals, without strict sourcing standards, could expose American businesses to reputational and legal risks.
For now, the Biden administration has not formally responded to the newly announced deal or commented on its alignment with ongoing efforts to diversify the U.S. supply chain away from Chinese dependence, especially in light of human rights concerns.
Still, the Trump announcement signals a shift in tone, emphasizing economic cooperation alongside nationalist trade protections.
“Our deal with China is done, subject to final approval with President Xi and me,” Trump stated. “Thank you for your attention to this matter!”
As geopolitical and economic tensions continue to evolve, analysts say the long-term implications of this deal will depend on enforcement mechanisms, transparency in the mineral supply chain, and both countries’ political will to uphold the terms.
