[CTC] Trump says China will ship rare earths in ‘done’ trade deal

[Arthur Stamoulis]

https://www.bloomberg.com/news/articles/2025-06-11/trump-says-china-trade-framework-done-subject-to-xi-approval

Trump says China will ship rare earths in ‘done’ trade deal

Bloomberg News
<https://www.autonews.com/author/Bloomberg-Bloomberg>
June 11, 2025 11:18 AM

President Donald Trump said a trade framework with China has been
completed, with Beijing supplying rare earths and magnets
<https://www.autonews.com/manufacturing/an-china-rare-earth-restrictions-explained-0611/>
 “UP FRONT” and the U.S. allowing Chinese students into its colleges and
universities.

The U.S. and China will maintain tariffs at their current, lower levels
following negotiations between the two nations in London, Trump said June
11. The president said Chinese President Xi Jinping and he must still
formally sign off on the agreement.

“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI
AND ME,” Trump posted on social media. “WE ARE GETTING A TOTAL OF 55%
TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!”

*U.S. reaches trade deal with China on rare earths that will ease threats
for auto industry*
<https://www.autonews.com/manufacturing/an-china-rare-earth-restrictions-explained-0611/>

*Read more: Live updates on tariff news and impacts*
<https://www.autonews.com/manufacturing/an-tariffs-live-updates-0304/>

Trump’s comments prompted fresh questions about the terms of the pact U.S.
and Chinese negotiators reached Tuesday. Markets on Wednesday reacted with
uncertainty, with the S&P 500 opening little changed.

In a later post, Trump said Xi and he “are going to work closely together
to open up China to American Trade. This would be a great WIN for both
countries!!!”

Trump’s initial post suggested China may have to restart rare earth
shipments before the U.S. agrees to lower export controls on key
technologies. And his comments left doubt about whether Beijing could
negotiate tariff rates even lower.

The figure Trump posted includes a 10 percent baseline duty, a 20 percent
charge tied to fentanyl trafficking and roughly 25 percent from preexisting
levies from his first term as well as most favored nation rates, according
to a White House official — though the precise total remained unclear.

China’s Ministry of Commerce did not immediately respond to requests for
comment.

The U.S. and China reached an agreement on Tuesday following marathon
negotiations to implement the terms of a tariff truce reached last month in
Geneva. The plan offered reassurance to investors, who feared that recent
tensions could spiral out of control and reignite open trade warfare
between the world’s two largest economies.

Still, details were scarce at the conclusion of talks and Trump rushed to
fill the void.

“FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT,
BY CHINA,” Trump said in his post. “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 London meeting came together on short notice following a call last week
between Trump and Xi, after both nations accused the other of violating the
Geneva accord. U.S. officials accused China of stalling magnet shipments,
while Beijing vented anger with fresh Trump administration controls on chip
design software, jet engines and student visas.

That quarrel demonstrated the central role of export controls in the
economic rivalry between the two superpowers. China dominates the market
for rare earths necessary for defense and electric vehicle production
globally, and it also craves more advanced chips to advance its artificial
intelligence ambitions.

Under the pact, U.S. Commerce Secretary Howard Lutnick said Tuesday that
China pledged to speed up shipments of rare earths critical to U.S. auto
and defense firms, while Washington would ease some of its own export
controls. Trump’s comments, however, indicate he believes that Beijing
would have to make the first move.

“There were a number of measures the United States of America put on when
those rare earths were not coming,” he added. “You should expect those to
come off — sort of, as President Trump said, in a balanced way.”
Geneva accord

The Geneva agreement included a 90-day pause on very high tariffs both
nations implemented on each others’ imports that amounted to a de facto
trade embargo. It’s unclear whether that deadline, which expires in August,
remains in effect and if the two sides could use the time to further reduce
import taxes.

The recent round of discussions also did little to repair fundamental
issues, such as China’s massive trade surplus with the U.S., and a belief
in Washington that Beijing is dumping goods on its markets.

U.S. Trade Representative Jamieson Greer said Tuesday that no further
meetings are scheduled, though he noted that the sides talk frequently.
China’s chief trade negotiator Li Chenggang struck a similar tone, telling
reporters Tuesday that “we hope the progress we made will be conducive to
building trust.”

Trump received a victory on Tuesday when a federal court ruled he could
continue to enforce his global tariffs, bolstering leverage in trade talks.
The president during his second term invoked emergency powers to impose
duties on China, a move that a lower court ruled was illegal. That decision
was put on hold by a higher court so it could consider an appeal.
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