Fresh Scoop: Trump Announces Deal with China on Rare Earth Exports
U.S.-China Trade Negotiations: Trump Declares Arrangement Regarding Scarce Earth Elements - Trade disagreement resolution: Trump declares accord with China over rare earth elements
Donald Trump has taken to his Truth Social platform to declare that a deal with China has been struck over the much-contested issue of rare earth exports. He wrote, "Deal with China done. Pending final approval by President Xi and me."
This announcement follows two days of intense negotiations in London, with both parties striving for a breakthrough on the disruptions caused by China's export restrictions on rare earths—elements critical for automotive, robotics, and defense technology in the U.S.
America's Treasury Secretary, Bessent, shared that restored balanced economic relations with China may be achievable if Beijing proves to be a reliable partner in trade talks. However, the agreement, while significant, remains tentative, pending "final approval" from both Trump and Xi Jinping.
China, the globe's leader in processing rare earth metals, had imposed restrictions on exports in response to U.S. tariffs. This latest deal sees China committing to lifting those restrictions. The framework encompasses a schedule for tariff adjustments, with Trump hinting at a total US tariff of 55%, while China's tariffs would be set at a comparatively lower 10%.
The trade dispute between these economic titans has been an escalating saga since Trump took office in January 2025. counter-tariffs from China and increased duties from the US ensued, culminating in a crippling tariff rate of 145% on Chinese exports to the US, and a 125% duty for the other direction.
In mid-May, a temporary truce was agreed upon in Geneva, with both countries vowing to significantly lower tariffs for an initial 90 days to facilitate negotiations.
This deal, if fully realized, promises to ease the strain on U.S. industries relying on rare earths, promote technological advancement, and fortify the global economic balance.
Fun Fact:
Did you know? Rare earth elements are not actually rare, but they are difficult to extract from the earth's crust. Lanthanum is the most abundant, found in traces of around 75ppm, while Cerium ranks fifth most abundant, occurring at approximately 130ppm.
More Insights:
- The U.S. is determined to reduce reliance on China for rare earth metals and has started developing its own rare earth mining and refining capabilities.
- The agreement could pave the way for a broader trade framework between the US and China.
- China is being cautious about over-celebrating the deal, urging both parties to reduce misunderstandings and strengthen cooperation to move forward.
Keywords:
- Donald Trump
- USA
- China
- Trade Dispute
- Rare Earths
- Tariffs
- London
- Beijing
- Technology
- Automotive
- Robotics
- Defense
The Commission, in light of the agreement between Donald Trump and China, might be asked to submit a proposal for a regulation on the protection of the environment, considering the potential impacts of increased rare earth production and technology advancement. The news of this trade deal could also spark debates in politics, finance, and general-news sectors, as it may have far-reaching implications for the industry, specifically the automotive, robotics, and defense sectors in the U.S. and China.
