U.S. and China Reach Deal to Accelerate Rare Earth Shipments
The White House announced that the United States and China have reached an agreement to expedite shipments of rare earth minerals to the U.S., marking a step toward easing trade tensions between the world’s two largest economies.
According to a senior White House official, both sides agreed on an additional understanding related to the implementation framework of the Geneva Agreement. The focus is on accelerating the flow of rare earth materials into the U.S. once again.
Another administration source confirmed the agreement was finalized earlier this week. Bloomberg quoted U.S. Commerce Secretary Howard Lutnick as saying, “They will deliver rare earth elements to us,” and once that happens, “we will lift our countermeasures.”
President Donald Trump, who returned to the White House in January, said Wednesday that a deal with China had been signed but offered no further details. He added that a separate agreement with India could follow soon.
The deal signals potential progress after months of uncertainty and disruption in global trade. During trade talks in Geneva this May, China had pledged to lift non-tariff measures imposed since April 2 but provided little clarity on how the rollback would occur.
In response to U.S. tariffs, Beijing suspended exports of several vital minerals, disrupting supply chains critical to automakers, aerospace manufacturers, semiconductor companies, and defense contractors globally.
Sources noted that China has been cautious in granting export licenses for dual-use rare earths, especially to ensure they are not diverted for U.S. military use—resulting in delays in approvals.
The Geneva agreement initially stalled over China’s export restrictions, prompting the Trump administration to impose new controls blocking semiconductor software, aircraft, and other goods from being shipped to China.
In early June, Reuters reported that China had issued temporary export licenses for rare earth suppliers to three major U.S. automakers as supply disruptions began to surface. Later that month, Trump confirmed a deal allowing rare earth magnet and mineral exports to the U.S., while also enabling Chinese students to enroll in American universities.
