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

U.S. Treasury Secretary Scott Bessent said on Sunday that a rare earths agreement with China could be finalised “hopefully” by Thanksgiving.

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

“I am confident that after our leaders met in Korea — President Trump and President Xi — China will uphold its commitments,” Bessent told Fox News’ Sunday Morning Futures program.

Bessent also denied a recent report in the Wall Street Journal suggesting that Chinese authorities planned to limit rare earths access for US firms with military connections.

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

The US faces no simple solution to reduce its reliance on Chinese production of minerals vital to national security, semiconductor manufacturing, and the shift from fossil fuels to renewable energy such as wind and solar. According to the US Geological Survey, the country imported 80% of the rare earths it consumed in 2024.

For certain critical minerals, Chinese dominance is even more pronounced. Dysprosium, used in chip production, and samarium, essential for military applications, see Chinese refinement control reach up to 99%. Dysprosium and terbium are key components in magnets for electric vehicle motors and wind turbine generators, and they are also used in cellphones, high-intensity lighting, and nuclear reactors.

With inputs from agencies