Overview
- A senior U.S. official said the one-year Busan agreement remains active and that Washington and Beijing have discussed an extension, though the timing is undecided.
- The truce exchanged a 10% U.S. tariff cut for China pausing new export controls and issuing general licenses for rare earths and inputs like gallium, germanium, antimony, and graphite.
- Trade data show China’s rare-earth magnet exports rose 8.2% globally in March, yet shipments to the U.S. fell, prompting questions about how the deal is working for American buyers.
- The planned Trump–Xi meeting could decide whether the arrangement is renewed, a key issue for makers of electric vehicles, wind turbines, missile guidance systems, and advanced chips.
- New U.S. defense procurement rules starting January 2027 will ban Chinese-sourced rare earths, pushing contractors to line up alternate supply even if talks extend the truce.