Trump Announces China to Resume Rare Earth Mineral Shipments Following Productive Call with Xi

In a significant development for U.S.-China trade relations, President Donald Trump announced on June 6, 2025, that Chinese President Xi Jinping has agreed to resume the export of rare earth minerals and magnets to the United States. This agreement follows a 90-minute phone call between the two leaders aimed at easing escalating trade tensions.

Background: The Rare Earth Dispute

Rare earth elements are critical components in the manufacturing of electric vehicles, consumer electronics, defense systems, and various clean energy technologies. China dominates the global supply chain, accounting for approximately 70% of rare-earth mining and over 90% of processing. In April 2025, China imposed new licensing requirements on the export of these minerals, effectively halting shipments to the U.S. and disrupting supply chains for automakers, chip producers, and defense contractors.

The Trump-Xi Call and Its Outcomes

President Trump, speaking aboard Air Force One, confirmed that President Xi agreed to restart the flow of rare earth minerals to the U.S. “Yes, he did,” Trump stated when asked about the agreement. He further noted that the two countries are “very far advanced on the China deal.”

As a gesture of goodwill, China has granted temporary export licenses to rare-earth suppliers working with major U.S. automakers. However, the licensing process remains stringent, with only about 25% of applications reportedly approved, causing continued uncertainty in the supply chain.

Upcoming Trade Talks in London

Building on the momentum from the leaders’ call, senior U.S. officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer, are scheduled to meet with a Chinese delegation in London on Monday for a new round of trade talks. The discussions are expected to address the easing of tariffs and the resumption of critical mineral exports.

Implications and Future Outlook

While the resumption of rare earth shipments marks a positive step, China’s continued control over the export process and the slow approval of licenses suggest that supply chain challenges may persist. The U.S. has been investing in domestic rare-earth production and processing capabilities to reduce reliance on Chinese supplies, but experts warn that it could take a decade or more to establish a self-sufficient supply chain.

The outcome of the upcoming trade talks in London will be closely watched, as both nations navigate the complexities of economic cooperation and strategic competition.