Trump says China trade deal is done but needs final approval

After weeks of escalated tensions between China and US, President Donald Trump on Wednesday said a trade agreement was reached between the US and China, pending final approval from him and Chinese President Xi Jinping.Central to the deal is China’s commitment to supply essential magnets and any necessary rare earth materials to the United States, a critical issue that had previously stalled talks in London. According to Donald Trump's statement, the US will, in return, permit Chinese students to continue their studies at American colleges and universities, a move welcomed by both sides.  China will supply magnets and rare earth minerals to the US, and in turn its nationals can study in American colleges and universities, President Donald Trump said.Over two months since the US and China engaged in a big tariff war, Trump has now described the relationship between the two countries as "excellent".

Rare earth elements have become a critical flashpoint in this trade conflict. These minerals are essential for manufacturing electric vehicles, semiconductors, defence systems, and other advanced technologies. China dominates about 90 per cent of the global rare earth supply and refining capacity, giving it significant leverage. In early 2025, China imposed strict export controls requiring licences for rare earth shipments, disrupting supply chains and forcing some US manufacturers, including Ford, to halt production temporarily.