Trump Proclaims Completion of Rare Earth Agreement with China

In a significant development following U.S.-China trade talks, President Trump has announced a deal involving the supply of rare earth metals and magnets from China to U.S. companies.

U.S. President Donald Trump reported a major breakthrough in trade negotiations with China, revealing that a deal has been reached concerning the supply of rare earth metals and magnets. This announcement came after a two-day intensive discussion in London, aimed at easing trade tensions escalated over previous months.

Trump shared via his Truth Social platform that the agreement is pending final approval from both himself and Chinese President Xi Jinping. A framework for the deal appears to be in line with prior agreements established during earlier negotiations in May and reinforced during a phone call between Trump and Xi. However, full details regarding the deal have not been publicly disclosed.

The essence of the negotiations stemmed from growing concerns within the U.S. regarding China's pace in resuming exports of these critical materials. In addition, the U.S. had been under scrutiny for imposing limitations on Chinese access to advanced technologies and semiconductor exports. In response to these ongoing tensions, U.S. Commerce Secretary Howard Lutnick emphasized that the discussions have effectively clarified the previous Geneva consensus.

Despite the announcement, market reactions have signaled skepticism, with some experts, such as Terry Haines from Pangaea Policy, describing the deal as limited in scope and overly generalized. Haines expressed concerns that achieving a broader U.S.-China trade agreement is likely to be a prolonged process.

Further discussions are expected as both nations navigate the complex landscape of trade relations, working on implementing agreed-upon changes while addressing outstanding issues.