U.S. President Donald Trump stated on Friday that Chinese President Xi Jinping had agreed to allow the export of rare earth minerals and magnets to the United States, a development that could help ease ongoing trade tensions between the two economic superpowers.
When asked by a reporter aboard Air Force One whether Xi had consented to the move, Trump responded, “Yes, he did.”
The Chinese embassy in Washington did not immediately comment on the matter.
Trump’s remarks followed a rare direct phone conversation with Xi, held a day earlier, aimed at defusing the escalating trade conflict centered on critical mineral exports.
Following the call, Trump described the outcome as “very positive,” and said there should no longer be uncertainty around the complexity of rare earth product supplies.
Separately, two sources familiar with the situation reported that China had issued temporary export licenses for rare earth shipments to suppliers working with the top three U.S. automakers—another signal of de-escalation.
Top officials from both governments are scheduled to meet again in London on Monday to continue trade discussions.
“We’re very far advanced on the China deal,” Trump told reporters Friday.
Previously, the U.S. and China reached a temporary agreement in Geneva on May 12 to suspend many of the high-level retaliatory tariffs that had been imposed since Trump’s return to office in January. Markets, which had been concerned about the risk of prolonged trade friction, responded positively to the announcement.
However, China’s move in April to halt exports of various key minerals and magnets had already disrupted global supply chains, impacting sectors ranging from automotive and semiconductors to defense.
In response, Trump accused Beijing of breaching the Geneva deal and imposed restrictions on certain chip-design tools and other technology exports to China. Beijing denied the accusations and warned of potential countermeasures.
Rare earth elements, crucial for advanced manufacturing, remain a strategic asset for China. Trump could face political backlash at home if American industries suffer production shortfalls due to a lack of these materials.
Since reassuming office in January, Trump has frequently floated severe trade penalties against foreign partners, only to walk back some of the threats later. This unpredictable pattern has left global leaders and businesses uncertain about U.S. trade policy.
