Rare-Earth 'Deal Done': Trump Says China To Supply Magnets, Metals
The US and China completed their two days of trade talks in London.
US President Donald Trump said on Wednesday that a deal with China had been reached to end the rare-earth-magnet crisis.
China will supply magnets and rare earths, while the US will allow Chinese students in its colleges and universities, the US president said.
"Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China," Trump said in a post on Truth Social.
"Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent! Thank you for your attention to this matter!" he added.
The two countries completed their two days of trade talks in London with a plan to revive the flow of sensitive goods like magnets and rare earths — important components that go into making electric vehicles.
US Commerce Secretary Howard Lutnick said both sides had established a framework for implementing the Geneva consensus that last month brought down tariffs, Bloomberg News reported. "First we had to get sort of the negativity out," he said. "Now we can go forward to try to do positive trade, growing trade."
Last week, Trump spoke to Xi for the first time since taking office in January as ties between the two countries deteriorated as both sides reneged on the Geneva accord.
US officials accused China of stalling magnet exports, while Washington angered Beijing with new controls on het engines, chip design software and student visas.
On April 4, as a reaction to the US’s steep tariffs, China imposed a stricter new end-user certification process for supply of rare earth materials. An import licence will be issued only if a supplier meets the end-use clause of local, non-military operations. The certification process is arduous and can take up to 45 days.
That move has threatened to upend vehicle production from Japan to India and Europe. In Japan, Suzuki Motor Co. Ltd. had to temporarily halt production of the Swift hatchback after a key supplier ran out of rare earth magnets. In India, automakers face an added layer of uncertainty, given the country’s complicated ties with China.
