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The U.S. and China just struck a deal on rare earths. This is why it’s easing trade tensions.

Why This Matters

President Donald Trump said Thursday that a deal had been signed “yesterday” with China, but offered no details.

June 27, 2025
12:28 PM
2 min read
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Advanced ➔ Results The U. And China just struck a deal on rare earths. This is why it’s easing trade tensions. Published: June 27, 2025 at 8:28 a.

ETResizeNegotiators for Chinese President Xi Jinping (L) and President Donald Trump have reached an agreement that will allow rare earth exports to the U.

, potentially easing tensions between the two trade superpowers. Photo: evgenia novozhenina/Agence France-Presse/Getty ImagesU.

Stock futures were powering higher on Friday as China confirmed details of a trade deal that will allow rare earth exports to the U. , in a move that’s easing tensions between the two countries.

The exports of critical minerals, or rare earths, have been a longstanding irritant in the U. -China relationship. Last month, U.

Trade Representative Jamieson Greer said that Beijing had “restricted the flow of rare-earth magnets to us and other countries in the world.

” The materials are used in a variety of ducts, including automobiles and cellphones. the Author Robert SchroederRobert Schroeder is the Washington bureau chief for MarketWatch. him on X @mktwrobs.

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