President Donald Trump announced that Chinese President Xi Jinping has agreed to resume rare earth mineral exports to the U.S., following a recent trade negotiation call. This development comes amid ongoing tensions in U.S.-China trade relations, which had recently seen the halt of shipments of critical minerals, affecting U.S. manufacturing and defense sectors. The news follows a lengthy call between Trump and Xi, during which both leaders discussed the intricacies of their trade agreement, signaling potential progress in the complex negotiations.
Trump held a press briefing on Air Force One, where a reporter asked if Xi had agreed to restart the flow of rare earth minerals and magnets to the U.S. Trump responded affirmatively, stating that the trade deal was ‘very far advanced.’ The halting of these shipments in April had been a significant blow to U.S. industries, particularly the defense sector, which relies heavily on rare earth metals for components in advanced weaponry and technology.
The temporary halt in exports was part of new licensing rules imposed by China, which require export licenses for these materials, a process that takes 45 days. This delay has threatened Trump’s tariff strategy, as China produces about 60% of the world’s critical mineral supply and processes up to 90% of it. The halt also came after Beijing had imposed sanctions on U.S. military contractors in response to arms sales to Taiwan, further complicating the trade relationship.
While the resumption of shipments is seen as a positive development, experts caution that the broader trade issues remain unresolved. Russia has expressed willingness to engage in economic cooperation with the U.S. on rare earth minerals, offering an alternative but one that may not be as strategic for U.S. defense needs. As negotiations continue, the outcome of these talks will have significant implications for both nations’ economies and international trade policies.