U.S. and China Strike New Deal on Rare Earths Exports and Tariffs

The White House on Thursday announced significant progress in trade relations between the United States and China, with both countries reportedly reaching a fresh understanding on key issues, including the expedited shipment of rare earth minerals to the U.S.

Following months of tension and back-and-forth negotiations, the latest breakthrough comes after talks resumed in London this month, building on an earlier consensus reached in Geneva in May. That agreement initially saw both sides agree to temporarily ease punitive tariffs imposed during years of trade friction.

However, implementation hit a roadblock when U.S. officials accused China of backpedaling—particularly by delaying export license approvals for critical rare earths, which are vital for U.S. defense, tech, and energy sectors.

READ ALSO: Crypto Thefts Surge to $2.1 Billion in First Half of 2025

Now, according to a White House official speaking to AFP, the Trump administration and Beijing have “agreed to an additional understanding for a framework to implement the Geneva agreement.” This new framework aims to reinforce mutual commitments and ensure smoother trade operations going forward.

The clarification followed remarks by President Donald Trump, who, while speaking at an event earlier in the day, hinted that a deal with China had just been signed—though he offered no specific details at the time.

READ ALSO: Anna Wintour Steps Down as Editor of U.S. Vogue After 37 Years

China’s agreement to accelerate rare earth shipments marks a notable shift, as these materials are central to many advanced U.S. industries, from electric vehicles to aerospace and missile technology. Any disruption in supply can have ripple effects across global manufacturing and national security.

The announcement also suggests renewed momentum in broader U.S.-China economic ties, which have remained strained over issues ranging from trade imbalances and intellectual property rights to geopolitical tensions in Asia.

Be the first to know. Tap to join us on Telegram.