President Donald Trump stunned political observers Wednesday with the announcement of a sweeping new trade deal with China—one that secures vital rare earth materials for the United States but includes a controversial concession involving Chinese students studying in American universities.
Posting on Truth Social, Trump declared that the agreement with Chinese President Xi Jinping is “done, subject to final approval,” and emphasized its key provision: “Full magnets, and any necessary rare earths, will be supplied, up front, by China.” Given that China controls over 60% of the world’s rare earth mining and nearly 90% of the processing, this deal marks a major strategic victory for U.S. manufacturing and defense sectors.
Rare earths are essential components in everything from smartphones to fighter jets, and any disruption in their supply could cripple American industries. Trump’s announcement appears to lock in supply lines at a critical moment as tensions with Beijing escalate globally.
But buried in the fine print is a detail that has conservatives and MAGA loyalists expressing concern: Chinese students will once again be allowed full access to U.S. universities. Trump confirmed this in his post, stating, “We will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!).”
This provision has raised red flags given past instances of espionage and biological research violations involving Chinese nationals on student visas. During Trump’s first term, his administration took steps to revoke hundreds of these visas over national security concerns. Critics worry that opening the gates again may invite a repeat of those dangerous breaches.
Adding to the controversy is the new tariff structure under the agreement. American goods entering China will face a relatively low 10% rate, while Chinese goods coming into the U.S. will see a steep 55% tariff. Trump called the deal a “great win for both countries,” pointing to the imbalance as a major victory for U.S. industry.
The New York Post reported that this deal follows a prior Geneva consensus that temporarily slashed tariffs by over 100% on both sides. However, China had reportedly failed to uphold its end of that deal, prompting U.S. countermeasures—including the student visa revocations that are now being reversed.
While the rare earth component of this agreement is being hailed as a strategic masterstroke, the decision to allow Chinese students back into American institutions has triggered backlash from within Trump’s base. Supporters are urging caution, calling for tighter vetting and stronger enforcement to ensure national security isn’t compromised in the name of diplomacy.
As the Trump administration finalizes this bold new pact with Beijing, all eyes are on the fine print—and the fallout.