The US and China have struck a tentative trade deal, with China agreeing to export rare earths and the US easing visa restrictions on Chinese students.
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| The US and China reached a limited agreement on rare earth mineral exports and visa access for students, easing tensions but leaving broader trade issues unresolved. Image: Collected |
Washington, USA — June 12, 2025:
The United States and China have reached a limited agreement aimed at stabilizing their volatile trade relationship, President Donald Trump announced on Wednesday. The deal includes China agreeing to resume critical exports of rare earth elements and the US stepping back from plans to revoke visas for Chinese students—two key flashpoints in recent months.
“Our deal with China is done, subject to final approval from President Xi and me,” Trump declared on his social media platform, Truth Social, following two days of high-level talks in London.
The agreement builds upon the temporary truce brokered in May in Switzerland, where both nations scaled back steep tariffs that had threatened global supply chains. While this new accord is being framed as progress, officials and analysts caution that it leaves fundamental trade disputes unresolved.
The negotiations were sparked by US concerns that China was withholding vital exports of magnets and rare earth metals—materials used in everything from electric vehicles to defense systems. Meanwhile, Beijing objected to US-imposed restrictions on semiconductors and threatened limitations on student visas that impact technology and academic exchanges.
According to US Commerce Secretary Howard Lutnick, the new framework will implement the "Geneva consensus" reached earlier this year. “We’re totally on the right track,” he told CNBC, noting that “things feel really good,” despite the deal’s limited scope.
Trump said he will unilaterally set new tariff rates on several trading partners by early July, reiterating plans to issue formal notices before a July 9 deadline to reimpose tariffs. Treasury Secretary Scott Bessent also confirmed that the US may extend its pause on some aggressive tariffs to keep negotiations with other countries alive.
In the US-China context, tariffs had risen to as high as 145% earlier this year before the Geneva truce brought them down—US tariffs to 30% and China’s on US goods to 10%. The current agreement does not eliminate these levies but maintains the easing while opening a pathway to further negotiation.
Chinese Vice Commerce Minister Li Chenggang confirmed that the two governments have reached a “framework for implementing the consensus” from the June 5 phone call between Trump and President Xi Jinping. Both sides say final approval from their heads of state is expected soon.
Critics remain skeptical of the agreement’s impact. Terry Haines of Pangaea Policy called the deal “the smallest of accomplishments” and noted it does not suggest a comprehensive US-China trade resolution is imminent.
Still, the reopening of rare earth exports and a de-escalation on student visa threats mark a rare moment of cooperation amid years of tensions. As the world’s two largest economies continue to clash over trade, technology, and geopolitical influence, this agreement—however limited—offers a potential foundation for more durable diplomacy.