A White House official stated on Thursday (June 26) that the United States and China have reached an agreement to expedite rare earth exports, marking a new development in efforts to ease trade tensions between the world’s two largest economies. Earlier, U.S. President Donald Trump revealed that both sides had signed an agreement but did not disclose specific details, mentioning that another potential agreement involving the Indian market might also be in progress.
During the U.S.-China Geneva talks in May, China agreed to lift some of the non-tariff countermeasures imposed since April, though the exact implementation remains unclear. Previously, in response to U.S. tariff hikes, China had suspended exports of several critical minerals and magnets, severely disrupting global supply chains for the automotive, aerospace, semiconductor, and defense industries.
A White House official said the two sides have reached a supplementary understanding to implement the Geneva agreement, focusing on accelerating rare earth exports. Another official confirmed that the deal was finalized earlier this week. U.S. Secretary of Commerce Howard Lutnick stated that China would resume rare earth supplies, while the U.S. would reciprocate by lifting corresponding countermeasures.
According to an industry insider, China has been “very serious” about enforcing dual-use restrictions on rare earths and has been vetting buyers to ensure they are not diverted for U.S. military purposes. This has slowed down the approval process for export licenses. Previously, China’s export controls had hindered progress on the Geneva agreement, while the U.S. maintained restrictions on exports to China, including semiconductor design software and aircraft.
In early June, media reports indicated that China had granted temporary export licenses to rare earth suppliers for three major U.S. automakers to alleviate supply chain disruptions. Later that month, Trump mentioned that the agreement included China’s supply of rare earths and magnets, while the U.S. would relax restrictions on Chinese students studying in America.
