US-China rare earths deal expected by Thanksgiving, says Treasury Secretary – Firstpost

US Treasury Secretary Scott Besant Said Sunday that the rare earth deal with China could “hopefully” be finalized by Thanksgiving.

His comments follow a framework agreement announced last month under which Washington agreed not to impose full 100% tariffs on Chinese imports, while Beijing committed to delaying export licensing arrangements on critical rare earth minerals and magnets.

“I believe that after the meeting of our leaders in Korea – President Trump and President Xi – China will uphold its commitments,” Besant told Fox News’ Sunday Morning Futures program.

Besant It also refutes a recent report from the Wall Street Journal that said Chinese officials planned to limit access to rare earths for US companies with military connections.

The United States and China have reached a trade truce on rare earths, but Beijing retains a significant advantage, controlling about 70% of global mining and more than 90% of processing capacity. An advantage that will be difficult for the Trump administration to overcome.

The US has no easy solutions to reducing its dependence on Chinese production of minerals critical to national security, semiconductor manufacturing, and the shift from fossil fuels to renewable energy like wind and solar. According to the US Geological Survey, the country will import 80% of its rare earth consumption in 2024.

For some important minerals, Chinese dominance is even more pronounced. Dysprosium, used in chip production, and samarium, essential for military applications, Chinese purification controls reach 99%. Dysprosium and terbium are major components in magnets for electric vehicle motors and wind turbine generators, and are also used cell phonehigh intensity lighting, and nuclear reactors.

with inputs from agencies