Trending Now
Schumer, Democrats try to save face, blame GOP for possible government...
Trump’s approval rating holds steady amid deep partisan divide on deportations...
Details of Trump’s highly anticipated AI plan revealed by White House...
Iran doubles down on refusal to end nuclear program, ready for...
Senate votes to consider former Trump lawyer for lifetime as appeals...
Supreme Court says Trump can proceed with firing Democrat-appointed CPSC members
New Russiagate evidence ‘directly’ points to Obama, DOJ will decide ‘criminal...
Johnson erupts over ‘dangerous’ Biden mental decline ‘cover-up,’ while Democrats push...
Johnson erupts over ‘dangerous’ Biden ‘cover-up’ as Democrats push Epstein disclosure
Trump admin official to meet with Israel, Qatar amid push for...
Schumer, Democrats try to save face, blame GOP for possible government...
Trump’s approval rating holds steady amid deep partisan divide on deportations...
Details of Trump’s highly anticipated AI plan revealed by White House...
Iran doubles down on refusal to end nuclear program, ready for...
Senate votes to consider former Trump lawyer for lifetime as appeals...
Supreme Court says Trump can proceed with firing Democrat-appointed CPSC members
New Russiagate evidence ‘directly’ points to Obama, DOJ will decide ‘criminal...
Johnson erupts over ‘dangerous’ Biden mental decline ‘cover-up,’ while Democrats push...
Johnson erupts over ‘dangerous’ Biden ‘cover-up’ as Democrats push Epstein disclosure
Trump admin official to meet with Israel, Qatar amid push for...
Insider Dealing News
  • Stock
  • Investing
  • Politics
  • World News
  • Editor’s Pick
Politics

Rare minerals, student visas, and tariffs: the fine print of the US-China deal

by June 11, 2025
written by June 11, 2025
Trump trade tactic

In a major development in the ongoing US-China trade saga, President Donald Trump announced on June 11, 2025, that a trade framework with China has been finalized, including a critical agreement for Beijing to supply rare earth minerals to the United States.

This deal, described by Trump as ‘done,’ also includes provisions for Chinese students to access American universities, marking a potential thaw in the frosty relations between the two economic giants.

As trade tensions have escalated in recent months, this agreement could have far-reaching implications for industries reliant on rare earths, from technology to defense.

China’s dominance over rare earth minerals

Rare earth minerals are a group of 17 elements essential for manufacturing a wide range of high-tech products, including smartphones, electric vehicles, military equipment, and renewable energy technologies.

China dominates the global supply chain, accounting for approximately 60% of the world’s rare earth production and a significant portion of refining capacity.

This dominance has long been a point of contention, especially as the US has sought to reduce its reliance on Chinese supplies amid national security and economic concerns.

The trade war between the US and China, reignited under Trump’s administration with tariffs and export controls, has placed rare earths at the center of the conflict.

Earlier in 2025, China imposed export restrictions on these critical materials in response to US tariffs, sending shockwaves through American industries.

Details of the new trade agreement

According to Trump’s announcement on June 11, 2025, China has agreed to supply rare earths up front as part of the broader trade framework.

While specific details regarding volume, pricing, and timelines remain undisclosed, Trump emphasized that the deal is subject to final approval by both himself and Chinese President Xi Jinping.

Trump specified that the US will impose “a total of 55% tariffs” on Chinese imports, while US goods in China will face only a 10% tariff rate in return.

The 55% tariff rate may initially appear to be an increase from the 30% level agreed during last month’s trade truce, when both countries reduced previously higher tariffs.

However, according to a White House official, the 55% figure reflects the combination of three existing measures: a 10% global “reciprocal” tariff on imports, a 20% levy related to fentanyl trafficking, and a 25% tariff that was already in place on Chinese goods.

Additionally, the agreement includes a provision allowing Chinese students to attend US colleges and universities.

The US will also move to ease restrictions on advanced technology sales to China.

Calling the deal “a great WIN for both countries,” Trump said the agreement would rebalance trade relations while maintaining US leverage through sustained tariff pressure.

Implications for US industries and national security

The rare earths supply deal could provide immediate relief to US industries that have struggled with supply chain disruptions due to China’s earlier export curbs.

Sectors such as consumer electronics, automotive manufacturing (particularly electric vehicles), and defense rely heavily on these minerals.

For instance, rare earths are critical for producing magnets used in military drones and fighter jets, making this agreement a potential boost to national security.

However, questions remain about the extent to which this deal addresses the underlying issue of US dependency on China.

Critics argue that without significant investment in domestic mining and processing capabilities, the US remains vulnerable to future supply shocks.

While Trump has previously signed executive orders to encourage domestic production of rare earths, progress has been limited by environmental regulations, high costs, and the time required to establish infrastructure.

Disclaimer: Portions of this article were generated with the assistance of AI tools and reviewed by the Invezz editorial team for accuracy and adherence to our standards.

The post Rare minerals, student visas, and tariffs: the fine print of the US-China deal appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Wells Fargo sees US markets to washout in 2025, but rise in 26: here’s why
next post
American Bar Association blasts Bondi’s decision to block it from judicial nominations: ‘Deeply disturbing’

Related Posts

Goldman Sachs warns of slower US growth amid...

July 22, 2025

Powell’s speech today didn’t give Wall Street what...

July 22, 2025

Trump admin courts Amazon, defence giants for Golden...

July 22, 2025

Analysis: EU’s new sanctions rock diesel market, price...

July 22, 2025

US to exit UNESCO again, citing anti-Israel bias...

July 22, 2025

EU prepares €100B tariff retaliation if Trump imposes...

July 23, 2025

Chinese import shifts, infrastructure boom reshape global metals...

July 23, 2025

Japan’s market is rallying, but its economy says...

July 23, 2025

China’s heatwave fuels power crisis and health warnings

July 23, 2025

Musk may not be done with US politics:...

July 22, 2025

Goldman Sachs warns of slower US growth amid...

July 22, 2025

Powell’s speech today didn’t give Wall Street what...

July 22, 2025

Trump admin courts Amazon, defence giants for Golden...

July 22, 2025

Analysis: EU’s new sanctions rock diesel market, price...

July 22, 2025

US to exit UNESCO again, citing anti-Israel bias...

July 22, 2025

EU prepares €100B tariff retaliation if Trump imposes...

July 23, 2025

Chinese import shifts, infrastructure boom reshape global metals...

July 23, 2025

Japan’s market is rallying, but its economy says...

July 23, 2025

China’s heatwave fuels power crisis and health warnings

July 23, 2025

Musk may not be done with US politics:...

July 22, 2025







    Fill Out & Get More Relevant News





    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2024 InsiderDealingNews.com All Rights Reserved.

    Insider Dealing News
    • Stock
    • Investing
    • Politics
    • World News
    • Editor’s Pick