In a significant development, President Trump has claimed a "deal" has been reached regarding rare earth metals with China, contingent upon approval from both leaders.
Trump Declares Completion of Rare Earths Agreement with China
Trump Declares Completion of Rare Earths Agreement with China
US President announces "deal" with China on rare earth metals, aiming for reduced trade tensions.
In a bold announcement on his platform Truth Social, President Donald Trump revealed that the United States and China have come to a "deal" concerning the supply of rare earth metals and magnets, vital for various industries ranging from electronics to electric vehicles. This announcement follows two days of intense negotiations in London aimed at easing ongoing trade tensions.
Trump stated that China would facilitate the provision of these crucial materials to US firms, while the US would reconsider its stance on restricting visas for Chinese students. "Our deal with China is done, subject to final approval from President Xi and me," he remarked.
The latest agreement builds upon a fragile truce established in May, which had attempted to stabilize a trade relationship that faced significant disruption due to escalating tariffs. The initial agreement had seen US tariffs on Chinese goods reduced, but both nations have indicated that full compliance with associated commitments remains a work in progress.
China's Vice Commerce Minister Li Chenggang confirmed that the two nations have formulated a framework for implementing consensus reached in previous discussions. US Commerce Secretary Howard Lutnick expressed optimism, noting, "we're totally on the right track" during an interview with CNBC.
The urgency for these conversations stemmed from US concerns regarding delays in China's exports of rare earth materials, which are essential for advanced manufacturing technologies including artificial intelligence. Meanwhile, China has criticized recent US measures aimed at restricting its access to semiconductor technologies.
Despite the optimistic rhetoric, experts warn that the potential for a more comprehensive trade agreement remains distant. Analysts noted minimal market reaction to the news, with many deeming the scope of the deal "very limited" and indicative of lingering issues between the two nations.
Treasury Secretary Scott Bessent stated that while the focus of these recent talks was narrow, a broader resolution would be a long-term endeavor. As both sides navigate this complex negotiation landscape, the ramifications of the agreement and its implementation could shape future US-China relations significantly.
