United States President Donald Trump claims to have resolved the rare earths supply problem with China.
On social media Wednesday, the leading American politician explained that Chinese exports of rare earth magnets, materials and other products into the U.S. will resume in the immediate future, subject to 55 per cent tariffs. China will only need to pay 10 per cent levies on imports of American products.
For the U.S., 20 per cent will be linked to fentanyl trafficking, which China plays a major role in by being the main supplier of the drug’s precursor materials. By imposing this tariff on American companies they will want to spend less money on Chinese goods, making the nation pay the price for sending fentanyl constituents to Mexican drug cartels.
Furthermore, 10 per cent will be a baseline reciprocal tariff and the remainder pre-existing levies, according to a White House representative’s statement provided to Reuters.
“RELATIONSHIP IS EXCELLENT,” Trump boasted on social media following successful discussions held between delegations of the two countries in London. Rare earths were the number one topic.
Although the president stated that the agreement still needs final approvals from himself and Chinese leader Xi Jinping, the news is highly encouraging for American companies that need the materials. China placed strict export controls on its critical stream of rare earth elements in April, sending automotive makers and military tech producers into a panic.
Additionally, threats made by the U.S. government to revoke student visas of Chinese citizens over the conflict are now being revoked.
Secretary of Commerce Howard Lutnick told reporters that the nations representatives have agreed to implement a framework discussed in Switzerland last month. Details are relatively scarce at this point.
“We’re totally on the right track,” Lutnick said. “Things feel really good.”
China currently dominates the rare earths supply chain, giving the nation significant leverage over countries that rely on its products. The country produces about 90 per cent of the worlds’s refined rare earth goods while being a global leader in processing technologies needed for the elements.
BREAKING: President @realDonaldTrump says US trade deal with China is done. Huge news…. pic.twitter.com/Q6l6TEoD4f
— Piers Morgan (@piersmorgan) June 11, 2025
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