President Donald Trump announced that the United States and China have come to an agreement over trade and the acquisition of rare earth minerals. Rare earth elements and magnets widely used by the automotive and defense sectors has been a key sticking point between the world’s two largest economies.

Trump wrote on Truth Social Wednesday: “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!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!”

The agreement is subject to final approval by Trump and China President Xi Jinping, with the President stating that he intends to work closely with Xi to open up China to American trade, describing the prospect as “a great WIN for both countries!!!”

Representatives from both sides had previously revealed that a deal had been reached on trade after a second day of high-level talks in London. U.S. Commerce Secretary Howard Lutnick told reporters that “we have reached a framework to implement the Geneva consensus and the call between the two presidents,” and only awaited presidential approval from both nations.

China’s vice commerce minister Li Chenggang said Wednesday: “The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting.” 

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