U.S. President Donald Trump announced on Friday that Chinese President Xi Jinping has agreed to allow the flow of rare earth minerals and magnets into the United States—a significant step toward easing trade tensions between the two global powers.
Speaking aboard Air Force One, Trump confirmed the agreement when asked by a reporter, simply stating, “Yes, he did.”
This development follows a rare and reportedly constructive phone call between Trump and Xi, aimed at addressing rising trade friction. Trump described the talks as reaching a “very positive conclusion” and emphasized the importance of rare earth products in the ongoing discussions.
In another sign of progress, China has reportedly issued temporary export licenses for rare earth supplies destined for major U.S. automakers, according to sources familiar with the matter.
Further negotiations are expected in London on Monday, where top officials from both countries will meet to continue trade discussions.
This comes on the heels of a May 12 agreement in Geneva to ease tit-for-tat tariffs for 90 days. However, China’s earlier decision to halt exports of key minerals had caused disruptions across industries reliant on these materials—from car manufacturing to defense.
Trump had previously accused China of breaching the Geneva deal and responded with export restrictions on chip-design tools. Beijing denied the allegations and warned of potential retaliatory measures.
Rare earths remain a strategic asset in U.S.-China relations, with both sides using trade leverage amid concerns over economic stability and global supply chains.