US China Sign Rare Earth Deal; Trump Praises Xi
Trump announced a 10% tariff cut on China’s fentanyl-related products as he met Xi Jinping in person after six years, aiming to ease tensions and boost cooperation.
US President Donald Trump announced on Thursday that the United States and China have reached a one-year agreement on the supply of crucial rare earth materials, marking a rare moment of cooperation between the two major global powers after months of escalating trade tensions.
Speaking to reporters aboard Air Force One, Trump said the deal would help stabilize the global supply of rare earth elements—essential minerals used in everything from smartphones to electric vehicles and military technology. “All the rare earths have been settled, and that’s for the world,” he declared, emphasizing that the agreement would be reviewed and renewed annually.
The announcement came after Trump met Chinese President Xi Jinping in person for the first time in six years. The highly anticipated meeting, described by both sides as constructive, was held amid ongoing disputes over trade, technology, and security issues.
As part of the new understanding, Trump also revealed that he has agreed to reduce tariffs on China’s fentanyl-related products to 10 percent, signaling a small but notable gesture toward easing economic frictions. The move comes as the United States continues to battle a devastating opioid crisis, much of which has been linked to synthetic fentanyl originating from China.
“This was a very good meeting—maybe one of the best,” Trump said with visible satisfaction.
The President went on to praise Xi Jinping, describing him as “a tremendous leader of a very powerful country,” and hinted at plans for continued high-level engagement between the two nations.
The meeting appears to have brought a temporary calm to a relationship that has been strained in recent months. Since a tense phone call between the two leaders in September, Washington and Beijing have exchanged sharp words over trade restrictions and security policies. Both countries had imposed retaliatory measures, with China enforcing strict export controls on rare earth materials earlier this month and the US threatening 100 percent tariffs on all Chinese imports, originally set to take effect on Saturday.
Analysts see Thursday’s announcement as a potential turning point—or at least a pause—in a volatile economic standoff that has disrupted global markets and supply chains. Rare earth elements are vital to industries worldwide, and China dominates their production. Any disruptions in supply have significant consequences for technology manufacturing and defense sectors in the US and beyond.
While officials from both sides have not yet released the full text of the deal, early indications suggest it includes guarantees of stable exports from China and commitments from the US to ease some trade restrictions. The arrangement is expected to provide breathing room for industries that depend heavily on these materials while giving negotiators time to pursue a longer-term framework.
As the world’s two largest economies cautiously move toward dialogue, Trump’s optimism suggests a renewed willingness to cooperate. Whether this spirit lasts beyond the one-year deal remains to be seen, but for now, both Washington and Beijing appear ready to take a step back from confrontation—and toward pragmatic engagement.