After the second round of trade talks in London, President Trump expressed his approval, declaring that a trade agreement had been reached between the U.S. and China, pending final confirmation from the leaders of both countries. Besides tariff rates, China will lift restrictions on rare earth exports, which is a relief for U.S. tech industries as rare earths are critical components in various technological products, including military hardware.

According to The Wall Street Journal, if negotiations proceed smoothly, Trump could potentially visit China as early as September. The two-day discussions were led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Steven Mnuchin and yielded positive results.

Chinese trade representative Li Chenggang stated that both sides have, in principle, reached a framework concerning the implementation of previously discussed agreements. Although a formal agreement has not yet been finalized, Trump has been upbeat about the prospects, asserting that the U.S. achieved a 55% benefit in tariffs while China only gets 10%. He also noted that China would supply critical rare earth materials to the U.S., while the U.S. would permit Chinese students to study in America.

The White House spokesperson reported that the President is satisfied with current discussions and that China has agreed to further open its markets outside this agreement. Meanwhile, CNN reported that China has agreed to ease rare earth export licenses, but only for a limited period of six months, indicating that Beijing is looking to maintain leverage amid rising tensions.

Experts highlight that China controls over 90% of global rare earth supplies, creating significant dependence for the U.S. On the strategic front, rare earths being weaponized poses a grave threat to U.S. military capabilities, risking delays in critical projects like the development of the sixth-generation F-47 fighter jet.