Have sealed deal with China, to get rare earths; tariffs at 55% : Trump

US President Donald Trump on Wednesday announced that a deal with China “is done” after two days of talks in London, marking a turnaround in the trade war between the two major economies.

“Our deal with China is done, subject to final approval with President Xi (Jinping) and me,” Trump posted on his social media platform Truth Social.

His post came after the negotiating teams from both sides concluded two-day talks in London, where they agreed to resolve their trade disputes.

“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 said.

“We are getting a total of 55 per cent tariffs, China is getting 10 per cent. Relationships are excellent! Thank you for your attention to this matter,” he said. “President Xi and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!,” he said.

The London talks focussed on both sides reaching a deal on China resuming supplies of rare earth metals, the key elements needed to manufacture mobile phones, semiconductors and missiles, besides automobile production.

Following the talks, US Commerce Secretary Howard Lutnick said the deal between the two countries should result in restrictions on rare earth minerals and magnets being resolved.

While China blocked rare earth exports, the US restricted Beijing’s access to US goods such as semiconductors and other related technologies linked to artificial intelligence (AI). “We have reached a framework to implement the Geneva consensus,” Lutnick told the media.

“Once the presidents approve it, we will then seek to implement it,” he said.

Ahead of talks with the US, China last Saturday approved a certain number of export license applications for rare earth-related metals.

The approval was granted considering rising global demand driven by industries such as robotics and new energy vehicles, a spokesperson of the Ministry of Commerce said in Beijing.

The approval was granted considering rising global demand for medium and heavy rare earth elements driven by industries such as robotics and new energy vehicles, a spokesperson of the Ministry of Commerce said in Beijing. Analysts said China wouldn’t have agreed to lift restrictions on rare earths unless it received meaningful concessions.