US, China Reach Deal: US to Allow Chinese Students, China to Supply Rare Earths

President Trump announced a deal with China in which China will supply magnets and rare earth minerals to the US, and the US will allow Chinese students to study at American universities. 

The Details: Trump said the US will impose 55% tariffs on China, and China will issue a 10% tariff on the US. The deal follows two days of negotiations in London, where officials reportedly revived a stalled framework from last month, and still requires final approvals from Trump and Chinese President Xi Jinping.

For Context: The US and China have been involved in a trade dispute since Trump took office, with each country imposing escalating tariffs on the other. Two weeks ago, the Trump administration announced it would be “aggressively” revoking the visas of Chinese students. Last week, Trump and Xi had a “very positive” 90-minute phone call in which the two discussed trade issues and extended invitations to visit their respective nations.

Key Quotes: Trump wrote, “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!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” An hour later, he added, “President XI and I are going to work closely together to open up China to American Trade.”

How The Media Covered It: Most major outlets covered the news fairly similarly. The Wall Street Journal (Center bias) wrote, “Negotiators didn’t disclose exactly what they had agreed to… [which] might suggest the US side will need Trump’s approval to undo some of the controls Beijing’s representatives asked for.”

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