WASHINGTON/LONDON/BEIJING – President Trump proclaimed on Truth Social that China has agreed to supply U.S. companies with “full magnets” and rare earth metals up front, while the U.S. will refrain from revoking visas for Chinese students. This announcement follows two days of intensive negotiations in London, intended to bolster the framework agreed at May’s Geneva meeting. UK-based talks reportedly fleshed out key details, with Commerce Secretary Howard Lutnick describing the London sessions as putting “meat on the bones” of the Geneva deal.

Civilian Rare Earth Flows Resume 

China has agreed to resume exports of civilian-use rare earths and magnets on an expedited six-month license basis . However, explicit assurances on military-grade materials—especially samarium‑cobalt magnets critical to defense applications—remain unresolved. Analysts and Reuters emphasize that China has yet to commit to full removal of restrictions on military-grade exports .

High Tariffs Stay in Place—55% vs 10%

Trump confirmed that U.S. tariffs on Chinese goods will remain around 55%, combining legacy duties and new levies tied to fentanyl precursor imports, while China will maintain a 10% levy on U.S. products. Treasury Secretary Scott Bessent emphasized that high tariffs will persist unless major trade breakthroughs occur. He also clarified there’s no “chips-for-rare-earths quid pro quo”—export controls on advanced AI chips will stay.

Markets Unimpressed

Financial markets displayed muted reactions following the announcement. Terry Haines of Pangaea Policy described the result as “very limited scope and unfinished status”—a small step to restore the Geneva ‘pause’, not indicative of a full-scale U.S.–China rapprochement . Reuters echoed that this deal leans heavily on a basic agreement, with critical details, especially military-grade exports, still unresolved .

G7 Prepares Strategic Mineral Plan 

As the U.S.–China deal proceeds, the G7 is drafting a coordinated strategy to secure critical mineral supplies, seeking to reduce global dependence on Chinese-controlled rare earth sources. Beyond simply restarting Chinese exports, Western nations—including the U.S.—are accelerating development of alternative supply chains, with investments in domestic and allied rare earth processing infrastructure. (zai)