The United States and China have reached an agreement to expedite rare earth shipments to the U.S., signaling progress in easing the prolonged trade war between the two largest global economies, the White House confirmed on Thursday.
According to a senior administration official, the deal includes a framework to implement the Geneva agreement reached during bilateral talks in May, with a focus on accelerating the export of critical minerals from China. These materials are vital for industries including automotive, aerospace, semiconductors, and defense.
U.S. Commerce Secretary Howard Lutnick, speaking to Bloomberg, stated that China had agreed to resume rare earth deliveries, and in return, the U.S. would lift countermeasures once the shipments are received.
President Donald Trump, who announced the agreement without specific details, also hinted at a separate upcoming deal involving India that could broaden economic cooperation in the region.
As part of the ongoing trade dispute, China had suspended exports of various rare earth elements and magnets in retaliation against new U.S. tariffs. This move had disrupted global supply chains and triggered counteractions from Washington, including restrictions on semiconductor software and aerospace exports to China.
An industry source noted that China had been meticulously vetting buyers to prevent rare earths from being used in U.S. military applications, contributing to delays in export licensing. However, recent reports indicate that China has begun issuing temporary export licenses to suppliers linked to major U.S. automakers.
While this latest agreement marks a step forward, officials acknowledge that it remains part of a broader, complex negotiation process with many unresolved issues still on the table.