Trump announced U.S.-China trade deal focused on rare earth exports and tariff relief; details remain under wraps as negotiators work to formalize terms.
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| Trump and Commerce Secretary Lutnick confirm a rare earth–centric trade agreement with China, signaling progress but withholding specifics on terms. Image Courtesy: Earth |
Bangkok, Thailand — June 27, 2025:
President Donald Trump announced late Thursday on the sidelines in Bangkok that the United States has signed a new trade agreement with China, noting that the deal includes provisions affecting rare earth minerals—critical components in electronics, EVs, and defense systems. Trump refrained from revealing specifics, instead projecting confidence that a similar agreement with India is forthcoming.
U.S. Commerce Secretary Howard Lutnick confirmed the pact had been “signed and sealed” a few days earlier in a Bloomberg TV interview, though he, too, offered no further details on the agreement’s contents.
China’s Commerce Ministry released a statement indicating that both nations had “confirmed the details of the framework,” and emphasized that export applications for controlled items—implicitly rare earths—would be approved under lawful conditions. In turn, it expects the U.S. to roll back a series of restrictive measures. “It is hoped that the United States and China will meet each other halfway,” the statement reads.
The negotiations reportedly build on accords struck in Geneva and London earlier this year, which suspended major tariff increases. While tariffs remain on numerous categories—such as metals and fentanyl-related products—the rare earth export controls had emerged as a more potent flashpoint in recent weeks.
In April, China imposed licensing requirements on seven essential rare earth elements, triggering concerns across U.S. industries reliant on them. In response, Beijing announced efforts this week to fast-track approvals for rare earth export applications and has already green-lit “a certain number of compliant applications.”
Secretary Lutnick praised President Trump’s hands‑on approach, stating, “The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal.” He also signaled that this rare earth agreement is likely the first of many such deals, including a potential pact with India.
Economic repercussions of the trade tensions have already begun to show: U.S. GDP contracted at a 0.5% annual rate in the first quarter as import demand surged ahead of tariffs. Meanwhile, Chinese factory profits dropped 9% year-over-year in May, with automakers among the hardest hit.
As diplomatic efforts continue, both nations appear to be threading a delicate needle—balancing strategic access to critical minerals with the need to ease broader trade tensions—and signaling potential progress toward a more sustainable trade framework.