U.S.-China Trade Deal Pauses Rare Earth Restrictions, Impacts Critical Supply Chains
President TRUMP and President Xi have reached a trade agreement that reduces tariffs and halts new restrictions on rare earth minerals. The deal marks a significant de-escalation in the ongoing trade tensions between the two nations, with the U.S. lowering tariffs and China committing to increased purchases of American agricultural products.
China will suspend its planned export controls on rare earths, gallium, germanium, and other materials critical for semiconductor manufacturing, electric vehicles, and defense applications. The WHITE House framed the agreement as a reset in trade relations, preventing further market disruptions from retaliatory measures.
As part of the deal, China will lift restrictions imposed since 2022, including tariffs on key U.S. exports like soybeans and pork. The agreement also removes non-tariff barriers such as the 'unreliable entity' lists that had blocked American firms from government contracts.
