US-China Sign 1-Year Rare Earth Deal; Trump Praises Xi Meeting
In a significant move to ease trade tensions, US President Donald Trump and Chinese President Xi Jinping have agreed to a one-year deal on the supply of rare earth materials, essential for manufacturing in defense, technology, and automobiles.
The agreement comes after the two leaders met in person for the first time in six years, amid growing differences over trade, technology, and security. Speaking to reporters aboard Air Force One, Trump said, “All the rare earths have been settled, and that’s for the world.” He added that the deal would be renewed annually.
Trump also announced a decision to cut fentanyl-related tariffs on China to 10 percent, describing the talks with Xi as “excellent.” “On a scale of 0 to 10, the meeting was a 12,” he said with a smile, calling Xi “a tremendous leader of a very powerful country.”
The meeting marked a turning point after months of escalating trade tensions. In September, both sides had exchanged sharp remarks during a heated phone call. The US had earlier imposed a 100 percent tariff on Chinese goods, which was due to take effect soon, in response to Beijing’s new export restrictions on rare earth materials.
However, Trump softened his tone after the meeting, calling the 100 percent tariff “not sustainable” and expressing confidence that cooperation on rare earths would help stabilize global markets.
Rare earth elements are crucial for defense systems, electric vehicles, and consumer electronics, and China currently dominates the global supply chain.
On the issue of fentanyl, Trump acknowledged progress and agreed to lower tariffs, while still urging China to do more to prevent the export of illegal opioids to the US. Beijing maintained that it has been cooperating with Washington and insisted that “tariffs are not the solution to the drug problem.”
The leaders also confirmed future visits — Trump plans to visit China in April, while Xi is expected to visit the United States later in 2026, either in Florida or Washington, D.C.
The latest meeting signals a possible thaw in US-China relations, as both sides look to balance competition with cooperation in key economic and security areas.
