Trump Announces Rare Earth Trade Deal with China, Teases Major Pact with India
In a significant step toward reshaping global trade alignments, U.S. President Donald Trump announced on Thursday that the United States has signed a key trade agreement with China focused on rare earth elements, and hinted at the possibility of a “very big” trade deal with India in the near future. The announcement came during Trump’s address at the “Big Beautiful Bill” event, where he emphasized his administration’s ongoing efforts to secure strategic supply chains and expand trade relationships.
Trump claimed the China deal, signed earlier in the week, marks a breakthrough in U.S. efforts to reduce dependency on unstable foreign supply sources. “We just signed with China yesterday. We’re starting to open up China. Things that never really could have happened before,” Trump said during his speech, adding that the deal will begin resolving long-standing bottlenecks in critical mineral exports.
Although he refrained from sharing detailed terms of the agreement, a White House official later confirmed that the deal includes provisions to expedite shipments of rare earths—essential components in the automotive, defense, and tech industries—from China to the United States. This understanding reportedly builds on the Geneva framework and aims to ease Chinese export restrictions, which had previously led to widespread disruption in global supply chains.
“The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official said, citing progress after months of stalled negotiations. The rare earth agreement marks a notable step forward in easing bilateral trade tensions and improving strategic resource access for the U.S.
Further elaborating on the agreement, U.S. Commerce Secretary Howard Lutnick stated, “They’re going to deliver rare earths to us, and once they do, we’ll take down our countermeasures.” The reciprocal arrangement suggests a more flexible and transactional approach to trade under Trump’s leadership, especially in areas critical to national security and innovation.
Turning to India, Trump signaled that a large trade agreement could be on the horizon. “We have one coming up, maybe with India. Very big one. Where we’re going to open up India,” he said. Though he didn’t provide further details, his remarks reflect a growing emphasis on deepening U.S.-India economic cooperation.
In a related development, U.S. Secretary of Commerce Howard Lutnick, speaking at the U.S.-India Strategic Partnership Forum earlier this month, echoed Trump’s optimism. “We are in a very, very good place,” Lutnick said. “You should expect a deal between the United States and India in the not-too-distant future.” He described the negotiations as progressing smoothly, suggesting that both sides have identified mutually beneficial terms.
As the U.S. continues recalibrating its trade relationships post-pandemic and amid shifting geopolitical dynamics, these developments mark a strategic shift toward securing supply chains and strengthening alliances. Trump’s announcement reinforces his administration’s focus on assertive trade tactics and aligns with broader efforts to reduce American reliance on adversarial nations while opening new avenues for global commerce.
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