President Donald Trump announced that a U.S.-China trade agreement restoring the Geneva truce is “done,” contingent on final approval by both himself and Chinese President Xi Jinping, with rare earth shipments and student visa access at its core.

Negotiators from Washington and Beijing reached a framework in London aimed at reviving last month’s Geneva accord, which had paused tariff hikes. Trump declared via social media that “full magnets and any necessary rare earths will be supplied, up front, by China,” while the U.S. will admit Chinese students to its universities—calling it a “great WIN for both countries.”

Commerce Secretary Howard Lutnick confirmed that the framework awaits leader-level approval and will restore the truce terms. China’s Vice Premier He Lifeng acknowledged the deal “in principle.”

Rare Earths for Education: The Trade-Off

China, which dominates global rare earth supply chains critical for defense and EVs, agreed to accelerate shipments. In return, the U.S. will ease restrictions on Chinese student visas and possibly review controls on high-tech exports, though no specific easing has been formally committed.

Trump emphasized that “we are getting a total of 55% tariffs,” a mix of previous levies, fentanyl-related penalties, and baseline duties, while China retains 10%.

Trust Gap Remains Despite De-Escalation

Despite the celebratory tone, both nations accuse the other of violating the spirit of earlier agreements. U.S. officials alleged that China slowed rare earth exports, while Beijing objected to tightening U.S. controls on chip design tools and jet engine components.

A commentary by Xinhua warned that Washington’s national security framing is a key obstacle to cooperation, though it left the door open for improved ties.

Political and Market Reactions Cautiously Optimistic

Market reaction was mixed, with uncertainty over implementation timelines and tariff durations. The 90-day pause agreed in Geneva is still ticking, set to expire in August.

Experts like Shan Guo of Hutong Research and Christopher Wood of Jefferies noted that the London deal is more about crisis management than long-term resolution. “This rare-earths issue has got real leverage for Beijing,” Wood remarked.