China Imposes Rare-Earth Export Cap to U.S.

China has imposed a six-month cap on export licenses for rare earth elements to U.S. automakers and manufacturers, aiming to strengthen its position in ongoing trade negotiations with the U.S. The move follows recent talks in London, where a tentative deal was reached that would see the U.S. relax export restrictions on jet engines, components, and ethane sent to China. Rare-earth licenses will only be issued after both President Trump and President Xi Jinping give final approval, which could happen within a week of the deal's signing. The stock market initially rose on news of the trade truce and a positive consumer-price index report but later declined over concerns about future supply chain stability and inflation. Despite progress, both countries have continued to accuse each other of undermining agreements. The rare earth elements affected are crucial to sectors such as electric vehicles, electronics, and defense.