President Donald Trump announced on Wednesday that the United States and China have reached an agreement: China will resume supplying magnets and rare earth minerals to the U.S., while American colleges and universities will once again admit Chinese students.
” FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. 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!)” Trump stated. He emphasized that the framework requires formal approval by both heads of state, and the agreement aims to restart the Geneva tariff truce consensus reached last month.
A White House official confirmed to Reuters that the U.S. will impose a 55% total tariff on imported Chinese goods, while China will impose a 10% tariff on U.S. imports. According to the agreement, both sides will finalize the terms after the resumption of material flows. However, while the new terms restore supply chains and student exchanges, they leave unresolved core issues including the China-U.S. trade surplus and broader structural imbalances.
Between 2020 and 2023, China accounted for 70% of U.S. rare earth imports, solidifying its position as the top supplier, followed by Malaysia, Japan, and Estonia. China produces approximately 90% of the world’s refined rare earths and possesses the world’s largest separation and purification capacity, dominating global supply chains. These strategic minerals are widely used in military equipment, electric vehicles, and next-generation electronics. Core products of companies like Lockheed Martin, Tesla, and Apple rely on these materials.
At the peak of the tariff war on April 4, China imposed export controls on some rare earth minerals and magnets (without a complete ban but requiring case-by-case approvals). Chinese think tank scholars suggested on Thursday that Beijing has no intention of relinquishing the strategic leverage conferred by its dominance in the rare earth supply chain and may use it to urge Washington to ease its own export controls aimed at blocking China’s access to advanced U.S. semiconductors and technologies.
A recent survey by the American Chamber of Commerce in China revealed that among affected member companies impacted by rare earth export controls, 75% reported their inventories would be depleted within three months.
EU Trade Commissioner Maros Sefcovic raised concerns in Paris this week with Chinese Commerce Minister Wang Wentao, stating that China’s rare earth controls have led to “a worrying situation in the European automotive industry.” China’s Ministry of Commerce stated in a Saturday announcement that during his visit to Europe, Wang pledged to address EU concerns and establish a “green channel” to expedite approvals for eligible applications.
