BREAKING: Trump Says China Deal Is Done: U.S. Gets 55% Tariffs, China 10% – Coincu

Key Points:

• Trump confirms U.S.-China deal with 55% tariffs and upfront rare earths from China.
• China agrees to supply rare earths as U.S. allows Chinese students entry under new deal.
• Oil prices rose after Trump’s post, as markets reacted to renewed U.S.-China trade agreement.

U.S. President Donald Trump stated on Wednesday that a new trade agreement with China has been reached, pending final approval from both leaders. Trump said the agreement will be confirmed by himself and Chinese President Xi Jinping.

Trump posted the update on Truth Social, describing the relationship with China as “excellent.” He also mentioned the U.S. will apply “a total of 55% tariffs” while China will impose 10% in return. No specific timeline was given for implementation.

Rare Earths and Magnets to Be Supplied by China

According to Trump, the agreement includes an upfront supply of magnets and rare earth materials from China to the United States. These materials are key to several sectors, including automotive and defense manufacturing.

Trump added that the U.S. will make certain concessions, such as allowing Chinese students to attend American colleges and universities. These terms appear to be part of a broader effort to ease trade tensions while maintaining strategic supply access.

The comments followed high-level trade talks held in London, where both sides reportedly made progress. U.S. Commerce Secretary Howard Lutnick said on Tuesday that negotiators had “reached a framework to implement the Geneva consensus and the call between the two presidents.”

The talks come after months of rising trade pressure, especially in the rare earth market. China had earlier imposed restrictions on exports of key minerals, creating supply concerns in global markets.

China’s Rare Earth Dominance and U.S. Concerns

China currently produces around 60% of the world’s rare earth supply and processes nearly 90% of global output. This position gives China a strong hold over key parts of the global critical minerals supply chain.

U.S. officials have previously expressed concern about this dominance, especially as the demand for rare earths grows in energy, defense, and technology sectors. The upfront supply commitment aims to stabilize U.S. access amid these strategic concerns.

Following Trump’s announcement, oil prices moved higher. Brent crude futures for August delivery rose $1 to $67.87, up about 1.5% on the day. West Texas Intermediate futures for July delivery climbed 1.8% to $66.14.

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