A rare earths deal between the United States and China will “hopefully” be concluded by Thanksgiving, US Treasury Secretary Scott Bessent said in a speech broadcast on Sunday.
Bessent’s comments follow a framework agreement announced last month in which Washington agreed not to impose 100% tariffs on Chinese imports, and China would suspend its export licensing regime for crucial rare earth minerals and magnets.
“I am confident that after our meeting in Korea between the two leaders, President Trump and President Xi (Jinping), China will honor their agreements,” Bessent said. Fox News “Sunday morning futures” program.
“And I am confident that after our meeting in Korea between the two leaders, President Trump and President Xi, China will honor their agreements.”
But, Bessent warned, if Beijing balks, the United States will have “many levers” to retaliate.
The Treasury secretary insisted that under the deal, rare earths will “flow freely as before April 4,” when China imposed restrictions on the sector, requiring export licenses for some products in response to Trump’s drastic tariffs.
Under the deal reached by Trump and Xi, the United States will reduce tariffs on Chinese goods and Beijing will buy at least 12 million tons of American soybeans by the end of this year and 25 million tons in 2026.
China, which stopped buying U.S. soybeans in response to Trump’s tariffs, “has made pawns of our big soybean producers,” Bessent said.
Bessent also disputed a recent Wall Street Journal report that Chinese authorities planned to restrict access to rare earths to U.S. companies with ties to the military.
Earlier this month, China suspended a series of export control measures it had imposed on Oct. 9, including expanded restrictions on certain rare earth materials and equipment, as well as lithium battery materials and ultra-hard materials, the Commerce Ministry said in a statement.
The suspensions take effect immediately and will apply until November 10, 2026, the ministry said.
The announcement confirmed and formalized a deal reached after U.S. President Donald Trump and Chinese President Xi Jinping reached a trade truce last month.
Both the White House and China’s Commerce Ministry have said such an announcement is imminent.
