Rare Earths Deal Between US and China Still in Effect, US Official Says

A senior United States official confirmed on Sunday that the rare earths supply deal between the US and China remains in effect, and that an extension will be announced in due course. The statement comes ahead of a scheduled meeting between President Donald Trump and Chinese President Xi Jinping in Beijing on May 14 and 15, 2026.

The official, speaking to reporters on condition of anonymity, said the existing agreement has not been terminated and that both sides continue to honor its terms. The deal, negotiated in late 2025, was designed to ensure US access to critical rare earth minerals and finished magnets from China in exchange for a pause on certain US tariffs and visa restrictions on Chinese students.

Background of the Rare Earths Deal

The rare earths agreement was reached during a series of talks between Washington and Beijing aimed at cooling trade tensions that escalated earlier in 2025. President Trump announced the deal in late October 2025, saying China had agreed to supply US companies with rare earth metals and permanent magnets, while the US would walk back threats to revoke visas of Chinese students.

The deal followed two days of intense negotiations in London, which produced a broader truce after a rapid escalation of tariffs had nearly paralyzed trade between the world’s two largest economies. The US president said at the time that he would send letters specifying the terms of the new deals ahead of a July 9 deadline to reimpose higher tariffs on countries worldwide.

US Treasury Secretary Scott Bessent separately said he expected the US would extend the existing pause on some of its most aggressive tariffs to allow trade talks with other countries to continue.

Current Status of Supplies

Despite the official confirmation that the deal remains in effect, market participants report that China is still restricting the rare earth elements that the US needs to produce its own permanent magnets and other products. According to a December 2025 report from Bloomberg, more than a dozen consumers, producers, government officials, and trade experts said that while China has boosted deliveries of finished products, primarily permanent magnets, the US industry remains unable to acquire the raw inputs needed to make those items on its own.

A Washington Post report from November 2025 described the bargain as one that “eliminates US worries about obtaining from China the essential rare earth minerals needed to operate an advanced economy — at least for the next year.” The report noted that the deal reduces US reliance on China for critical minerals but does not fully address long-term supply chain vulnerabilities.

Trump-Xi Meeting in Beijing

The upcoming meeting between Presidents Trump and Xi in Beijing on May 14 and 15 is expected to cover a wide range of bilateral issues, including the rare earths deal and broader trade relations. The senior US official indicated that the extension of the rare earths agreement could be formally announced during or shortly after the talks.

Analysts say the meeting is critical for maintaining the progress made under the current deal and for addressing unresolved issues, particularly the persistent restrictions on raw rare earth elements that US manufacturers say are still not flowing freely under the agreement.

Industry Concerns

US rare earth buyers and downstream manufacturers have expressed frustration that while finished magnet supplies from China have increased, access to the key elements needed to produce these magnets domestically is still constrained. This situation undermines the Trump administration’s stated goal of rebuilding a domestic rare earth supply chain.

“China is still restricting the rare earth elements that the US needs to produce its own permanent magnets and other products even after President Donald Trump reached a deal with his Chinese counterpart in October to lift restrictions on the supplies,” reported Bloomberg in December 2025, citing market participants.

Several industry groups have called on the US government to push for clearer terms on raw material exports in any extension of the deal.

Broader Trade Context

The rare earths deal is part of a larger effort to stabilize trade relations between the US and China. In October 2025, the two sides reached a truce after a rapid escalation of tariffs that had nearly paralyzed trade between the world’s two largest economies. The Trump administration had previously imposed aggressive tariffs on Chinese goods, prompting retaliatory measures from Beijing.

The US Treasury Secretary expected the US would extend the existing pause on some of its most aggressive tariffs to allow trade talks with other countries to continue. This suggests that the rare earths deal is seen as a test case for broader tariff negotiations.

Policy Implications

The continuation of the rare earths deal signals that both Washington and Beijing see value in maintaining a cooperative framework for critical mineral supplies, even as other areas of tension persist. However, the gap between the deal’s stated objectives and actual market conditions highlights the challenges of negotiating a comprehensive agreement.

Observers note that China dominates nearly every stage of rare earth production, from mining to processing to magnet manufacturing. The US has sought to reduce its dependence through investments in domestic mining and processing, but these efforts remain in early stages.

A US rare earth mine in Mountain Pass, California, remains the only large-scale rare earth mine in the country, but it lacks the capacity to process elements into the high-purity metals needed for advanced manufacturing.

Looking Ahead

The Trump-Xi meeting in Beijing this week will likely determine whether the rare earths deal is extended on its current terms or modified to address industry concerns. The senior US official’s statement that an extension will be announced at the appropriate time suggests that both governments are prepared to continue the arrangement, though the details remain under negotiation.

Industry participants will be watching for any signals on whether the raw material restrictions will be lifted, as this would directly affect the viability of US plans to boost domestic rare earth production. For now, the deal remains in effect, and talks are ongoing.