President Donald Trump took to Truth Social Wednesday morning, declaring a long-anticipated US–China trade deal “done,” pending only formal sign-off between himself and President Xi Jinping.
“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA,” Trump wrote in his all-caps post. “RELATIONSHIP IS EXCELLENT!”
In return, Trump said the US will reopen access for Chinese students to American colleges and universities — a reversal from recent visa threats — and allow limited aerospace and chip technology exports.
Tariffs Set: 55% for China, 10% for US
Trump confirmed that the deal locks in a 55% average tariff on Chinese goods, while China will retain its existing 10% rate. A separate 20% tariff on fentanyl-related imports also remains.
The deal follows two days of high-level negotiations in London, where Commerce Secretary Howard Lutnick said both sides had reached a “framework to implement the Geneva consensus.”
“Now we can go forward to try to do positive trade, growing trade,” Lutnick said Tuesday night.
Rare Earths at Center of Pact
The key breakthrough? China’s agreement to resume and front-load exports of rare earths and magnets, which are essential for US defense, EV, and aerospace manufacturing.
According to Carl Weinberg, chief economist at High Frequency Economics:
“At stake is release of rare earths to US manufacturers — stockpiles are dwindling fast. A ‘fail’ would raise risk of auto and aircraft production grinding to a halt as soon as next month.”
Markets React: Oil Pops
The market welcomed the breakthrough.
- Brent crude rose $1 to $67.87, with WTI crude up 1.8% at $66.14
- Energy and defense stocks saw a modest uptick in premarket trading
- Investors now await final confirmation from Beijing, which has yet to officially respond
This isn’t just a trade deal — it’s a rare earth lifeline for US industry. Trump gets tariffs, Xi gets tech. But the deal still lacks a formal signature, and China’s silence speaks volumes.
Markets love certainty, but what they’re getting is a handshake and a tweet. Until it’s inked in Beijing, rare earth relief remains a risk asset — not a sure bet.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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