U.S. President Donald Trump announced a breakthrough trade agreement with China, describing it as "done" pending final approval from himself and Chinese President Xi Jinping.

The deal, finalized after two days of high-level talks in London, aims to ease tensions between the world’s two largest economies by addressing key issues, including Chinese exports of rare earth minerals to the U.S. and access for Chinese students to American universities.

In a post on Truth Social, Trump stated, “Our deal with China is done, subject to final approval with President Xi and me. 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!).”

The agreement focuses on resuming Chinese exports of rare earth minerals, critical for manufacturing smartphones, electric vehicles, military equipment, and green energy technologies. It also reinstates access for Chinese students to U.S. universities, a flashpoint in the ongoing trade dispute. U.S. Commerce Secretary Howard Lutnick hailed the deal as a resolution to restrictions on rare earths and magnets, calling it a step toward implementing the “Geneva consensus” from earlier talks in May.

The Chinese delegation, led by Vice Commerce Minister Li Chenggang, confirmed that both sides reached a framework to implement agreements made during a June 5 phone call between Trump and Xi. The deal follows months of escalating tariffs, with U.S. duties on Chinese imports reaching 145% and Beijing retaliating at 125%. The Geneva talks had temporarily reduced these to 30% and 10%, respectively, but unresolved issues, including U.S. tech sanctions and China’s rare earth export restrictions, fueled further tensions.

Ahead of the London summit, China approved limited rare earth export licenses, signaling a willingness to negotiate. The agreement is expected to stabilize critical supply chains and reduce educational and technological frictions. However, analysts note that broader geopolitical tensions persist, and further negotiations are needed to finalize enforcement details.

Both leaders are expected to formally ratify the deal in the coming days, marking a significant de-escalation in the multi-year U.S.-China economic conflict. The agreement could pave the way for stabilized markets and limited cooperation, though challenges remain in ensuring long-term compliance. (ILKHA)