Donald Trump and Xi Jinping's Phone Call Sparks Hope for Swift Deal with China on Rare Earths
United States Arges for Swift Action on Rare Earths Production with China
In a much-anticipated move, the US is hopeful for a swift resolution in its trade spat with China. Following a chat between President Trump and his Chinese counterpart, Xi Jinping, the US Secretary of the National Economic Council, Larry Kudlow, has expressed optimism for a handshake deal in London today. This agreement, if sealed, would confirm the commitments made during their conversation.
"Today's meeting is designed to ensure they're serious and to literally shake hands," Kudlow told CNBC, hinting at an immediate lift on export restrictions on rare earths. The US delegation is expected to comprise key heads such as Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and US Trade Representative Robert Lighthizer. China's team will be led by Vice Premier Liu He.
Earlier this year, China suspended the export of a variety of critical minerals and magnets, causing turmoil in global supply chains for automakers, aerospace companies, semiconductor firms, and defense contractors.
Recent tensions between the world's two largest economies took a turn for the better when Trump and Xi agreed to discontinue their trade wars. After the escalations in tariffs throughout Trump's presidency, a 90-day truce was negotiated in May, followed by significantly lower rates.
Investors alike are keen to see further de-escalation in the trade dispute. The shortage of rare earths, an essential element in the production of high-tech goods, necessitates a resolution to maintain the health of global supply chains.
- China
- US
- Trade
- Trade Conflicts
- Trade Relations
- Rare Earths
- Donald Trump
- Xi Jinping
- Tariffs
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While the details of the phone call between Trump and Xi Jinping aren't publicly available, current developments indicate a new agreement has been reached. On June 11, 2025, US and Chinese officials finalized a trade framework that includes China's commitment to resume exports of rare earth elements and magnets to the United States. This agreement addresses the export restrictions China imposed in response to US tariffs, which had disrupted key sectors like automotive, robotics, and defense [1].
It's important to note that while there was a 90-day tariff truce reached in May, the situation remained volatile until the London negotiations led to this new agreement. This deal underscores the critical role rare earths play in the US economy and global supply chains [1].
[1] - Unnamed source at ntv.de, citing government documents and internal communications within the U.S. and China.
The anticipated resolution in the US-China trade conflict is connected to a hoped-for agreement on the export of rare earths, as Secretary Kudlow suggests a handshake deal during the London meeting between key US and Chinese officials. This possible agreement follows Donald Trump and Xi Jinping's discussion, which led to optimism about lifting export restrictions on rare earths essential for the production of high-tech goods. With China's commitment to resume exports of rare earth elements and magnets, the global supply chains for crucial industries like automotive, robotics, and defense sectors are expected to stabilize. The successful resolution of this issue further emphasizes the importance of good trade relations between the US and China, aiming to prevent another escalation in tariffs as experienced in Trump's presidency.
