U.S. President Donald Trump said on Friday that Chinese President Xi Jinping has agreed to resume shipments of rare earth minerals and magnets to the United States.
This announcement could ease months of rising tensions between the world’s two largest economies.
Rare Earths Back on the Table
Speaking aboard Air Force One, Trump confirmed that Xi had agreed to resume the flow of critical materials.
“Yes, he did,” Trump replied when asked directly by a reporter.
This followed a rare and reportedly productive call between the two leaders aimed at de-escalating trade hostilities.
Trump characterized the discussion as ending on a “very positive conclusion.”
He added that the complexity of rare earths was no longer in doubt, implying a shared understanding between the nations.
Export Licenses Offer Temporary Relief
In a sign of easing frictions, China reportedly granted temporary export licenses to rare earth suppliers servicing the top three U.S. automakers.
Two sources familiar with the situation confirmed the licenses were issued.
Further discussions between American and Chinese officials are scheduled to take place in London on Monday.
“We’re very far advanced on the China deal,” Trump told reporters, suggesting more breakthroughs could be imminent.
On May 12, the two countries had agreed in Geneva to pause many of the high tariffs they had imposed on one another, setting a 90-day rollback period.
The move had sparked a rally in financial markets, which had feared deeper disruptions.
Disputes Over Critical Minerals Continue
However, China’s decision in April to suspend exports of several essential minerals had already caused major supply chain disruptions.
These materials are vital for the production of vehicles, semiconductors, and military hardware.
Trump previously accused China of violating the Geneva agreement and responded by imposing new restrictions on chip-design software exports.
Beijing rejected the accusations and vowed to retaliate.
Rare earth elements remain a powerful bargaining tool for China.
Any sustained shortage could trigger economic backlash in the U.S., where companies rely heavily on mineral-driven technologies.
Markets React to Progress
Markets responded positively to Trump’s latest comments.
On June 6, the Dow Jones and S&P 500 each rose by 1%, while the Nasdaq climbed 1.2%.
Since returning to office, Trump has frequently threatened tariffs, only to later backtrack—leaving businesses and global leaders scrambling to keep up.