Washington (TDI): The United States has managed to negotiate a major deal with China to accelerate the export of rare earth minerals, a move that President Donald Trump called a key step towards easing ongoing tension between the two countries.
Signed on Wednesday, the deal is part of the new talks intended to stabilize the US-China trade and to revitalize the broken global supply chain.
President Trump made the announcement at a White House press conference, without details, but hinted that major developments are on the horizon.Â
“We’ve made a deal with China, and it’s a very good deal,” declared President Trump. “There may be another deal coming up soon that could open up India—big things are happening.”
The deal comes in the wake of the May Geneva trade negotiations, where China had committed to reversing non-tariff countermeasures placed on American goods since April 2024. Lying at the heart of the new accord is the resumption of exports of rare earths, which are crucial to American industries such as defense, aerospace, electric vehicles, and semiconductors.
China had earlier suspended the exports in response to US tariffs, disrupting the global supply chain causing supply chains.
A White House official confirmed that both the countries have agreed on a framework for “implementing the shipment of rare earth shipments to the U.S. again.” The United States Secretary of Commerce, Howard Lutnick, also confirmed the deal, telling Bloomberg: “They’re going to send us rare earths, and once they do that, we’ll remove our countermeasures.”
China’s embassy in Washington has not yet commented on the agreement. However, a source familiar with the industry said Beijing has been closely screening rare earth buyers to ensure the materials are not diverted for US military uses, delays that had made previous export approvals challenging.Â
The rare earth accord is a hesitant milestone after months of disruption to trade and reciprocal export controls by the two powers, especially in strategic technology areas. In the first week of June, China provisionally issued licenses to critical suppliers to major American automobile makers, as a sign of restrained easing of tensions.
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