Trump Secures Rare Earths Deal With China, Tariffs Hit 55%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump announced a trade deal with China that grants the U.S. access to rare earth minerals and magnets. In exchange, Chinese students can study in the U.S., while tariffs on Chinese imports rise to 55%. The deal reignites concerns over forced labor in Xinjiang mineral supply chains.
Trump’s China Trade Deal: Rare Earths and Tariffs Quick Looks
- Trump announces 55% tariffs on Chinese goods under new trade deal
- U.S. to import magnets and rare earth minerals from China
- China regains access to send students to U.S. universities
- Rights groups flag forced labor risks in Xinjiang mineral supply chains
- Over 77 Chinese firms in titanium and lithium mining named in new report
- Xinjiang-linked minerals found in global brands like Coca-Cola, Walmart
- China denies all forced labor allegations, calls them politically motivated
- The deal follows U.S.-China negotiations in London to revive Geneva trade truce
- U.S. law from 2021 bans imports from Xinjiang unless proven labor-free
- Critics warn the deal complicates human rights enforcement in trade policy
Deep Look: Trump Strikes Rare Earth Deal With China as Tariffs Rise to 55%
WASHINGTON — President Donald Trump announced Wednesday that the United States has reached a new trade agreement with China that includes a critical concession: China will supply rare earth minerals and magnets to the U.S. market. In return, the U.S. will allow Chinese students to attend American colleges, while also raising tariffs on Chinese imports to 55%.
The agreement marks a significant development in the high-stakes trade standoff between the world’s two largest economies, which had recently resumed negotiations after a truce reached in Geneva last month.
Speaking from the White House, Trump hailed the deal as a “win for American industry and national security,” saying, “We’re getting what we need — rare earths, magnets, and minerals — and they’re paying the price.”
Rare Earths and the Supply Chain Controversy
While the trade deal is intended to stabilize markets and strengthen the U.S. supply of strategic materials, it has reignited human rights concerns tied to China’s far-western Xinjiang region, a major source of minerals like titanium, beryllium, lithium, and magnesium.
A new report from the Netherlands-based Global Rights Compliance warns that dozens of global corporations may be linked to minerals sourced from Xinjiang, where the Chinese government is accused of operating coercive labor programs targeting Uyghurs and other Turkic Muslim minorities.
Companies mentioned in the report include Coca-Cola, Walmart, Nescafé, Avon, and Sherwin-Williams, many of which rely on supply chains that touch critical mineral processors operating in Xinjiang. These materials feed into products from commercial paints to auto parts and aerospace components.
The report identified 77 Chinese suppliers in mineral industries operating in the region, raising concerns that these entities may be engaging in “labor transfer programs” that rights groups liken to forced labor and assimilation efforts.
Denials and Defenses
China’s Foreign Ministry flatly rejected the report, calling it a “lie concocted by anti-China forces.”
“No one has ever been forcibly transferred in China’s Xinjiang under work programs,” said spokesperson Lin Jian. “We urge organizations to stop interfering in China’s internal affairs under the guise of human rights.”
Many of the companies named did not immediately respond to requests for comment. However, the allegations echo a 2022 U.N. report, which found evidence that crimes against humanity may have been committed in Xinjiang, including mass detentions and forced labor.
U.S. Law vs. New Trade Realities
In 2021, then-President Joe Biden signed the Uyghur Forced Labor Prevention Act, blocking imports from Xinjiang unless companies can prove goods are free of forced labor. While initially focused on solar products, tomatoes, and cotton, enforcement has since expanded to sectors like aluminum and seafood.
With the Trump administration now striking a mineral supply deal that could increase imports from China — including potentially from Xinjiang — legal experts and rights advocates are questioning how the agreement will mesh with existing U.S. law.
“There’s a conflict here,” said one congressional staffer familiar with trade policy. “This deal could flood U.S. markets with Xinjiang-sourced materials while enforcement mechanisms remain patchy at best.”
Strategic Implications
Rare earths and critical minerals are indispensable for a broad range of U.S. industries, including:
- Electric vehicle batteries (lithium)
- Military aircraft components (beryllium)
- Telecom and defense systems
- Consumer electronics and magnets used in everything from smartphones to wind turbines
The International Energy Agency (IEA) has flagged growing concerns over mineral dependency, noting that China is not only the world’s leading producer of rare earths, but also the dominant refiner of lithium, cobalt, and graphite.
To alleviate pressure, Trump has signaled a long-term goal of reshoring mineral processing, but the U.S. remains years away from fully replacing China’s scale and output.
Markets and Diplomatic Fallout
Asian markets reacted positively to news of the framework deal earlier this week, and Trump’s Wednesday announcement further reassured some investors. Still, the sharp 55% tariff rate has sparked concern from trade analysts who fear consumer prices will rise.
In Washington, trade hawks welcomed the move as a win for strategic deterrence, while human rights advocates warned that economic concessions could come at the cost of ethical accountability.
“This is where economic expediency meets moral hazard,” said one former U.N. investigator on Xinjiang abuses.
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