Washington, DC – President Donald Trump announced a new trade framework with China on Wednesday, June 11, 2025, securing supplies of critical rare earth minerals and magnets for American industries while imposing a 55% tariff on Chinese imports. The deal, finalized after two days of negotiations in London, awaits final approval from Trump and Chinese President Xi Jinping.
The agreement aims to stabilize the US-China trade relationship, which has been strained by escalating tariffs and export restrictions. Under the framework, China will provide the United States with rare earth minerals and magnets essential for the automotive, electronics, and defense sectors. In return, the US will allow Chinese students to attend American colleges and universities, reversing recent restrictions on their access.
Trump hailed the deal on his Truth Social platform, stating that the US would receive “full magnets and necessary rare earths” upfront from China. He emphasized the tariff structure, noting, “We are securing 55% tariffs, while China faces 10%. Our relationship remains strong!” A White House official clarified that the 55% tariff rate includes a 10% global baseline tariff, a 20% levy tied to fentanyl trafficking, and a pre-existing 25% tariff on Chinese goods, rather than a significant increase from the 30% rate set in May during talks in Switzerland.
The London negotiations, led by US Commerce Secretary Howard Lutnick and Chinese Vice Premier He Lifeng, built on a prior Geneva agreement that had faltered due to China’s export curbs on critical minerals. These restrictions, imposed in April 2025 in response to Trump’s initial 34% tariffs, disrupted US industries, nearly halting automotive production due to shortages of magnets used in windshields and doors. China’s dominance in the global rare earth market—controlling 90% of rare earth magnets and nearly all heavy rare earth metals—gave it significant leverage in the trade dispute.
Lutnick described the London framework as adding “substance” to the Geneva pact, enabling both nations to move toward implementing a broader trade agreement. However, the deal offers little resolution to deeper trade tensions, with the US pushing for increased domestic manufacturing and China aiming to advance its technological capabilities in areas like artificial intelligence.
The trade framework comes amid broader geopolitical complexities. A recent report by Global Rights Compliance highlighted risks of forced labor in Chinese supply chains, particularly in Xinjiang, where minerals like titanium are sourced. Companies such as Walmart and Coca-Cola were named as potentially linked to these practices, raising ethical concerns about the deals.
The London deal marks a step toward easing immediate trade disruptions, but its success hinges on final approvals and the ability to address ongoing tensions. As both nations navigate this delicate truce, industries on both sides await clarity on the deal’s implementation and its long-term impact on global supply chains.
