U.S.-China Pact Clears Path for Rare Earth Imports
The United States and China have agreed to restore essential mineral exports from China to the United States according to Treasury Secretary Scott Bessent during a Friday announcement.
The agreement provides uninterrupted access to rare earth minerals and magnets which serve as essential materials for electronic devices and electric vehicles and defense applications. According to Fox Business President Donald Trump and Chinese President Xi Jinping established the foundation for this agreement through their phone call before negotiating in London.
The United States depended on China for most of its rare earth minerals until the Trump administration started imposing high tariffs which led Beijing to establish stricter export controls. The new agreement reduces tariffs while China agrees to send the same amount of materials as before.
Bessent emphasized that these magnets serve as the fundamental elements which support our industrial operations. The agreed-upon magnet flow has been interrupted but will now resume according to Bessent.
The agreement was announced by Trump as part of his initiative to transform international trade relationships. The restored supply chain will reduce the strain on American manufacturers and chipmakers who have faced supply disruptions and increased costs because of limited mineral availability.
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