In a significant development, U.S. President Donald Trump has confirmed that a new trade agreement between the United States and China is finalized. While the deal still awaits formal approval from both Trump and Chinese President Xi Jinping, its core terms have been made public. Under the agreement, China will resume its supply of rare earth minerals and industrial magnets—crucial components for electronics, defense technologies, and clean energy industries. In return, the United States will allow Chinese students to study in American universities, marking a reopening of educational exchange between the two global powers.
The trade deal also introduces a new tariff structure. The United States will impose a total 55% tariff on imported Chinese goods. This figure is composed of a 10% baseline tariff, an additional 20% related to China’s role in fentanyl trafficking, and a remaining 25% carried over from previous Section 301 tariffs. China, for its part, will apply a 10% tariff on most American imports. These tariffs are part of a broader strategy to balance trade interests while addressing security and economic concerns.
This agreement follows a series of talks held in Geneva and London aimed at rebuilding trust and cooperation between the two nations. The return of rare earth supplies is expected to ease pressure on critical U.S. industries that rely heavily on these materials. Meanwhile, the lifting of student restrictions signals a softening in diplomatic relations and a step toward restoring cultural ties.
As both sides move toward final approval, the agreement represents a major shift in U.S.-China relations. If implemented, it may not only bring stability to supply chains and trade flows but also rekindle academic and cultural collaboration between the world’s two largest economies.
