President Donald Trump on Wednesday announced that a new trade agreement between the United States and China has been finalized, pending final approval through a personal agreement between him and Chinese President Xi Jinping.
The announcement was made via Trump’s official account on the social media platform X, where he pointed out the key components of the deal and described the current U.S.-China relationship as “excellent”;.
“Our deal with China is done, subject to final approval with President Xi and me,”; Trump posted. “Full magnets, and any necessary rare earths, will be supplied, up front, by China.”;
The agreement includes a critical provision: China will supply the United States with full shipments of magnets and other essential rare earth materials.
These resources are vital to industries such as electronics, defense, and renewable energy, and China has long dominated the global supply chain for such materials.
Trump stated that the arrangement ensures a reliable flow of these strategic materials, reinforcing U.S. industrial capabilities and national security interests.
In exchange, the U.S. is expected to maintain access for Chinese students to American colleges and universities. Trump welcomed this part of the deal, writing:
“Including Chinese students using our colleges and universities (which has always been good with me!).”;
This marks a shift from earlier Trump-era policies, which sought to restrict student visas for Chinese nationals over concerns about intellectual property theft and national security.
Despite past tensions, Chinese students have remained a significant part of the U.S. higher education system.
Nearly 280,000 Chinese students were enrolled in American institutions during the 2023–2024 academic year, though India has since surpassed China as the top source of international students.
The president also outlined the tariff structure under the new trade deal, declaring it a win for American manufacturing. According to Trump, the United State will retain tariffs totaling 55%, while China will hold steady at 10%.
“We are getting a total of 55 per cent tariffs, China is getting 10 percent. Relationship is excellent!”; Trump stated.
This significant tariff gap is likely to be viewed by domestic manufacturers as a protective measure, though analysts suggest it could reignite criticism from global trade bodies and economic allies.
The final implementation of the agreement now hinges on a one-on-one consensus between Trump and Xi. No official statement has yet been released by Beijing.
The announcement comes amid growing global scrutiny of China’s trade practices and supply chain dominance, particularly in critical sectors.
It also signals a potential thaw in economic tensions between the world’s two largest economies.
