Highlights
- Trump suggests a potential visit to China amid renewed trade negotiations and resumption of rare earth magnet exports.
- Both U.S. and China agree to gradually reduce tariffs and ease export restrictions on strategic commodities.
- Ongoing geopolitical complexities suggest the global supply chain may never return to pre-trade war conditions.
In a potential inflection point for U.S.-China trade relations, President Donald Trump announced Tuesday that a visit to China may happen in the “not too distant” future—coinciding with resumed Chinese exports of rare earth magnets to the U.S. Trump, speakingalongside Philippine President Ferdinand Marcos Jr. in the Oval Office, highlighted a renewed “very good relationship” with Beijing and noted that China is now shipping “record numbers” of rare earth magnets critical to U.S. tech and defense manufacturing.
The remarks, reported by Fortune and the Associated Press, come as Trump’s administration prepares for high-level trade talks, with Treasury Secretary Scott Bessent set to meet his Chinese counterparts in Stockholm to extend an August 12 deadline for tariff rollbacks and restrictions. Both countries recently agreed in Geneva and London to gradually reduce harsh tariffs—once as high as 145% on Chinese goods and 125% on U.S. exports—and to ease export restrictions on strategic commodities, including rare earth elements (REEs), semiconductors, and jet engine components.
In what appears to be a goodwill gesture, China also suspended its antitrust probe into DuPont’s local operations, signaling a broader shift toward de-escalation.
For retail investors tracking rare earths, Trump’s China pivot may unlock near-term supply stability—but longer-term questions loom:
- Will resumed magnet shipments blunt U.S. domestic REE investment momentum?
- How durable is China’s permit approval trend amid upcoming political summits?
- Can Washington simultaneously court Beijing and build resilient supply chains in Latin America, Africa, and Australia?
Meanwhile, China appears to be playing its cards strategically—delaying formal summit scheduling until Trump signals willingness to accept terms viewed favorably in Beijing. U.S. officials continue to press China on excess manufacturing, oil trade with Russia and Iran, and military posturing in the Indo-Pacific.
REEx Take: Rare earth investors should watch not just trade deal headlines, but the fine print—especially on export permits, plant financing, and real supply chain diversification. The resumption of Chinese REE magnet exports may ease price pressures in the short term, but underlying geopolitical and industrial risks persist—and it’s unlikely the global supply landscape will ever return to its pre-trade war status quo.
Source: Fortune (opens in a new tab) | Didi Tang, Associated Press
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