Key deal includes rare earth supply to the U.S., student visa relaxations; Tariffs to remain in place
AMN / WEB DESK
Agreement includes rare earth supplies to the U.S., student visa access for Chinese nationals; tariffs to remain unchanged
U.S. President Donald Trump has announced that a trade agreement between the United States and China has been reached, marking a breakthrough following a period of rising economic tensions. However, Trump clarified that the deal awaits final confirmation from Chinese President Xi Jinping before it is officially enacted.
In a post on his platform Truth Social, President Trump revealed that under the new deal, China will supply the United States with fully processed rare earth materials and magnets, crucial for American industries such as defense, electronics, electric vehicles, and clean energy. Additionally, the agreement includes a provision to ease U.S. visa access for Chinese students, suggesting a renewed effort to promote educational and cultural exchange.
“The deal with China is done, pending final approval by President Xi and myself,” Trump wrote, adding that the U.S.-China relationship is currently excellent.
Strategic Focus on Rare Earth Elements
The inclusion of rare earth supplies is a significant move, given China’s dominance in this critical sector. Rare earths are vital for high-tech manufacturing, and the U.S. has long sought to diversify and secure its sources amid concerns about overdependence on Chinese exports.
By securing upfront deliveries of these materials, the U.S. is positioning itself to stabilize its supply chain and reduce vulnerabilities in sensitive areas such as defense technology and clean energy production.
Tariffs to Stay in Place
Despite the agreement, both sides have agreed to maintain existing tariff regimes. China will continue with its 10% tariff on U.S. goods, while the United States will retain a 55% tariff on imports from China. This suggests that while cooperation is increasing in some areas, core trade protections remain unchanged, possibly to be revisited in future talks.
Chinese Students to Benefit from Visa Relaxations
Another notable feature of the agreement is the granting of U.S. visas to Chinese students, an area that had seen significant restrictions in recent years. The move is expected to improve academic ties and boost people-to-people engagement, which had cooled amid geopolitical and economic rivalry.
Deal Follows Period of High Tension
This development follows several weeks of escalated trade and diplomatic tensions between Washington and Beijing, including disputes over high-tech exports, military posturing in the Indo-Pacific, and regulatory crackdowns on multinationals.
Analysts view the agreement as a pragmatic step forward, potentially opening the door for further cooperation in select sectors, even as broader competition persists.
Awaiting Final Green Light from Beijing
As of now, Beijing has not yet issued an official confirmation of the agreement. Market observers and global stakeholders are awaiting a formal endorsement from President Xi, which would mark the official ratification of the deal.
Experts note that while this agreement could de-escalate tensions and enhance sectoral cooperation, the sustained tariff structure and lack of a broader framework suggest that deep-rooted economic rivalry remains intact.