President Donald Trump stated Friday that Chinese leader Xi Jinping committed to allowing rare earth minerals and magnets to flow to the United States, signaling a potential thaw in strained trade relations between the economic superpowers.
Trump confirmed the agreement in response to a reporter’s question aboard Air Force One, answering simply, “Yes, he did.” The Chinese embassy in Washington did not immediately comment on the assertion.
This announcement followed a rare phone conversation between the two leaders on Thursday, aimed at resolving weeks-long trade friction. Trump described the talks as reaching “a very positive conclusion” regarding the “complexity of Rare Earth products.”
In a related development indicating eased tensions, China has reportedly granted temporary export licenses to rare earth suppliers for the top three U.S. automakers, according to two sources familiar with the matter.
The dialogue comes ahead of scheduled meetings between senior U.S. and Chinese officials in London next Monday. “We’re very far advanced on the China deal,” Trump told reporters on Friday.
Background tensions escalated after a May 12 agreement in Geneva temporarily rolled back most tariffs imposed since January. However, China’s April suspension of critical mineral exports – vital for automotive, semiconductor, and defense industries – continued disrupting global supply chains. Trump had accused Beijing of violating the Geneva truce, prompting U.S. restrictions on technology exports to China, which Beijing threatened to counter.
Rare earth elements represent significant leverage for China, as U.S. economic growth could suffer if domestic industries face shortages. Since returning to office, Trump’s shifting stance on trade penalties has created uncertainty among international partners and businesses, with policies frequently announced then modified abruptly.