Highlights

• Trump and Xi agree to resume trade negotiations amid deepening tariff war
• China controls over 80% of global rare earth refining
• U.S. faces strategic disadvantage in rare earth elements, crucial for defense, electronics, and green technology sectors
• Experts urge long-term strategy to break U.S. dependence on China's critical mineral supply chain
• Build industrial resilience

In a high-stakes 90-minute call on June 5, 2025, President Donald Trump and Chinese President Xi Jinping agreed to resume trade negotiations amid a deepening tariff war.

While Trump described the exchange as “very good” and “positive for both countries,” the reality is far more complex: Washington enters the renewed talks at a critical disadvantage, particularly regarding rare earth elements (REEs)—a domain Beijing continues to control.

Despite a temporary agreement in May to ease retaliatory tariffs, U.S. officials now accuse China of stalling on its Geneva pledge to increase REE exports. This hesitation underscores Xi’s leverage: China controls over 80% of global rare earth refining, giving it powerful influence over the U.S. defense, electronics, and green tech sectors.

Trump’s vague remarks on the “complexity” of rare earth products signal strategic vulnerability rather than progress. Meanwhile, escalating tensions—spurred by new U.S. restrictions on Chinese semiconductors and student visas—have hardened Beijing’s stance. With tariffs already resembling an embargo, the resumed talks offer little reassurance that the U.S. can offset its dependence on China’s critical mineral supply chain anytime soon.

Has POTUS Been Reading Rare Earth Exchanges?

It sure looks that way. This outlet has consistently urged President Trump to open direct lines of communication with President Xi—and to make a high-level visit to China ultimately. Let’s be blunt: there’s no other realistic way right now to secure the rare earth magnets and other mission-critical materials needed to power next-generation fighter jets and advanced defense systems.

But don’t mistake diplomacy for dependency. Trump’s team must launch a serious, decade-long plan to break America’s reliance on any single country, especially China, for REEs and critical minerals. That means forging deep, trusted alliances—not one-off transactions for a few extra bucks—and committing to a bold industrial policy that makes American resilience more than just a slogan.