The Blubber

Washington and Beijing have finalized a trade agreement aimed at easing American access to rare earth minerals and magnets from China—materials vital to U.S. manufacturing and microchip production—U.S. Treasury Secretary Scott Bessent announced Friday.

The agreement follows months of tension after China retaliated against tariffs imposed by the Trump administration by slowing exports of these critical resources. The new deal marks a turning point, signaling renewed cooperation between the world’s two largest economies.

Speaking on Fox Business Network’s Mornings with Maria, Bessent said President Trump and Chinese President Xi Jinping previously held a phone conversation, which was followed by in-person negotiations in London. “Our teams met in London, ironed this out, and I am confident now that, as agreed, the magnets will flow,” Bessent said.

He explained that the deal includes a reduction in tariffs and a renewed commitment from China to resume shipments of rare earth magnets to the U.S. “They form the core of a lot of our industrial base,” Bessent noted. “They were not flowing as fast as previously agreed.”

His remarks came two weeks after President Trump announced a preliminary agreement with China aimed at easing export restrictions on these critical materials. That agreement also included U.S. concessions, such as easing student visa policies for Chinese nationals.

Commerce Secretary Howard Lutnick confirmed to Bloomberg TV that the deal was signed earlier in the week.

China’s Commerce Ministry responded Friday to questions about the export slowdown, saying both countries had “further confirmed the details of the framework.” The ministry stated, “China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China.”

The trade pact builds on earlier negotiations in Geneva in May, which led both sides to delay new rounds of tariff increases that threatened to disrupt global supply chains. Talks later continued in London, laying the groundwork for the finalized agreement mentioned by President Trump and confirmed by Bessent.

Bessent described the deal as a step toward easing tensions: “What we’re seeing here is a de-escalation.”