Washington, A rare earths trade agreement between the United States and China could be finalised by Thanksgiving, US Treasury Secretary Scott Bessent said on Sunday. His comments follow a framework deal announced last month aimed at easing tensions in the critical minerals sector.
Framework Agreement Details
Under the framework, Washington agreed not to impose 100% tariffs on Chinese imports, while Beijing would delay an export licensing regime affecting rare earth minerals and magnets. The deal also includes China purchasing at least 12 million metric tons of American soybeans by the end of this year, rising to 25 million metric tons in 2026.
Bessent told Fox News’s Sunday Morning Futures programme:
“I am confident that post our meeting in Korea between the two leaders, President Trump, President Xi, that China will honour their agreements.”
He added, however, that the United States has “lots of levers” to retaliate if Beijing fails to comply.
Restoring Rare Earths Flow
The Treasury secretary said that under the agreement, rare earths “will flow freely as they did before April 4,” when China imposed restrictions requiring export licenses in response to Trump’s tariffs. China had suspended these measures earlier this month, covering rare earths, lithium battery materials, and super-hard materials, effective immediately through November 10, 2026.
Bessent also dismissed recent reports suggesting that China planned to restrict rare earth access for US companies with military ties.
Wider Trade Truce
The rare earths deal is part of a broader trade truce hammered out by President Trump and President Xi last month. Beyond minerals, the agreement reduces US tariffs on Chinese products and addresses longstanding disputes over agricultural trade, particularly US soybean exports.
Bessent criticised China’s previous suspension of soybean purchases, saying the country “made pawns out of our great soybean farmers.”
The agreement formalises earlier commitments made during high-level meetings and aims to stabilise trade flows between the two economic powers, with officials from both countries signalling a forthcoming official announcement.
