Highlights

• Trump offers to negotiate tariffs in exchange for:
  • China buying more U.S. soybeansStopping fentanyl exportsEnding rare-earth restrictions
  This follows Washington's 100% additional tariff on Chinese imports.
• China controls 85-90% of global rare-earth refining and magnet production, making it a strategic chokepoint unlike commodities such as soybeans that can shift suppliers.
• Both nations are using rare earths as a geopolitical bargaining chip, signaling that supply-chain sovereignty has become a frontline issue in U.S.-China trade negotiations.

---

President Donald Trump, aboard Air Force One, told reporters he’s “not looking to hurt China”—just to make a deal. His price: more U.S. soybeans bought, fentanyl exports curbed, and an end to Beijing’s “rare-earth games.” The offer comes days after Washington leveled a 100 percent additional tariff on Chinese imports, bringing the effective duty on some goods to a historic 130 percent. Beijing, unsurprisingly, called it economic coercion.

Trump’s leverage play—tariffs for concessions—is familiar theater. But this time, rare earths share the stage with soybeans and synthetic opioids, a curious trinity that binds farm, pharma, and high-tech geopolitics together in one breathless headline.

What’s Real, What’s Rhetoric

From a supply-chain standpoint, Trump’s remarks align with reality in onerespect: As the Rare Earth Exchanges (REEx) community is wellaware, China continues to dominate global rare-earth refining and magnet production, accounting for roughly 85–90 percent of the world’s processed output. Beijing’s August 2025 export-control tightening has indeed pinched some U.S. and Japanese downstream buyers, so Trump’s reference to “rare-earth restrictions” is grounded in fact.

We must remember China isn’t “paying America” tariffs—it’s American importers footing those bills. And no verified U.S. customs data supports the claim of a 130 percent blended rate across categories; only certain high-tech or defense-linked products reach that level. What’s accurate in recent Asian depictions is that the move signals a willingness to weaponize tariff schedules as bargaining chips for commodity access.

Why RareEarths Matter Most

Unlike soybeans, which can shift suppliers, or fentanyl precursors, which can be interdicted, rare earths are strategic chokepoints. Beijing’s mention of them in trade talks—and Washington’s elevation of the topic—both confirm that supply-chain sovereignty is now a frontline issue, not a background concern. Investors should note that China’s Ministry of Commerce still holds the power to grant or deny export licenses for heavy rare earths such as dysprosium and terbium—critical for EV motors and guided missiles alike.

This public volley may also serve a domestic purpose: signaling to markets that Trump is pressing for industrial self-reliance while keeping agricultural constituencies calm ahead of harvest-season politics.

Behind the Curtain

For a sense of how media worldwide is covering, a recent Times of India report (opens in a new tab) captures the mood but glosses over nuance, blurring tariff mechanics and trade leverage. It’s not misinformation—but it does amplify drama over detail.

REEx suggests that the real story is subtler: both powers are circling back to a transactional détente, using rare earths as a geopolitical yardstick of who controls tomorrow’s technologies.

© 2025 Rare Earth Exchanges™ – Accelerating Transparency, Accuracy, and Insight Across the Rare Earth & Critical MineralsSupply Chain.