Former U.S. President Donald Trump announced on June 11 that the U.S. and China have reached a new trade agreement. As part of the deal, China has agreed to “accelerate” its supply of rare earth materials to the U.S.—a move Trump called a “done deal.” The announcement immediately drew global attention, particularly from the tech sector, as rare earth elements play a critical role in the production of everything from electric vehicles and smartphones to advanced military systems.

According to sources close to the deal, the agreement covers more than just rare earth supplies. It also includes a partial easing of China’s export restrictions and a commitment to make U.S. student visa access more accessible for Chinese applicants. In the past, rare earth supply has been a major point of contention in U.S.-China trade talks. While both sides had previously reached a 90-day tariff pause in May, ongoing disagreements over rare earths and education visas led to a breakdown in negotiations and tighter U.S. scrutiny on Chinese student visas.

After a series of high-level phone calls and renewed negotiations—this time in London—the two sides agreed to move forward under the framework of the Geneva Protocol. Official confirmation from both countries’ top leadership is still pending.

Despite this breakthrough, Trump reiterated on his social media platform that the U.S. will maintain a 55% combined tariff on Chinese goods. This includes a 10% global baseline tariff introduced in April, an additional 20% tariff targeting fentanyl-related exports, and the ongoing 25% tariff under Section 301 of the U.S. Trade Act. In comparison, China has set its tariff rate on U.S. goods at 10%. The tough stance on tariffs underscores Washington’s strategy: leverage economic pressure while securing critical material supplies that sustain its tech industry.

Following the announcement, rare earth-related stocks saw immediate volatility. Given China’s long-standing dominance in the global rare earth market, any policy shift or supply disruption tends to ripple through the tech supply chain. Analysts generally regard the agreement as a stabilizing factor—if implemented effectively, it could ease concerns about supply shocks and bring more predictability to an otherwise uncertain market.

Big picture: this rare earth deal marks more than just a renewed chapter in U.S.-China economic relations—it could have far-reaching implications for the future of global high-tech manufacturing. The coming months will be critical. Investors and companies alike will be watching not only how the deal is carried out, but also whether broader tariff policies are revised. Simply put, the path of U.S.-China relations from here will directly impact strategic decisions across the tech and investment landscape.