Trump Announces Deal with China on Rare Earth Metals

• Trump announced a deal that will ensure U.S. access to Chinese rare earth metals.
• The agreement includes an increase in the number of Chinese students studying at American universities.
• China controls a significant portion of the world's rare earth metal production, complicating the situation for the U.S.

This is reported by Forbes, The Guardian.

Deal with China and Rare Earth Metals

U.S. President Donald Trump announced the achievement of a trade deal with China, which requires final approval from President Xi Jinping. A key aspect of the deal is expanding U.S. access to Chinese rare earth metals in exchange for concessions that will allow more Chinese students to study at American universities.

Rare earth metals are critically important for the production of modern defense technologies, including tanks, rockets, submarines, and fighter jets. For instance, a single F-35 fighter jet requires about 900 pounds of rare earth metals.

China controls over 70% of the world's rare earth metal production, including samarium, which is essential for military technology. Trump previously ordered the Pentagon to find new sources of supply for these metals, as the U.S. lacks sufficient production capacity to manufacture them.

The necessity for a deal became even more pressing after China imposed export restrictions on rare earth metals in April 2025, complicating the situation for American defense manufacturers. This created a threat to the supply of products needed to sustain U.S. defense capabilities.

If implemented, the deal could serve as a short-term solution to the long-term challenges faced by the U.S. in defense technology production. However, the situation regarding rare earth metals remains complex, and further actions by China could impact supply stability.

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