US, China Truce; US Signs Rare-Earth Deals

U.S. and Chinese officials sketched a preliminary truce ahead of Presidents Trump and Xi’s planned APEC meeting that would pause planned U.S. tariffs and Chinese export curbs on rare earths. During President Trump’s Tokyo visit, the U.S. signed a U.S.–Japan framework to secure critical minerals and issued memoranda with Malaysia and Thailand as part of a broader push to reduce reliance on China’s dominant mining and refining capacity. The reported pause prompted investors to unwind positions in U.S.-listed rare-earth miners and raised hopes of resumed Chinese agricultural purchases and reduced tariff escalation. Trade-policy uncertainty persists, including a recent 10% tariff on Canada tied to an Ontario ad and legal questions over the administration’s emergency authority. Industry sources warn of higher consumer prices, order cancellations and slower customs processing amid a partial U.S. government shutdown, and some firms have flagged weaker margins. China remains the dominant processor of rare earths, underscoring the geopolitical limits on quickly diversifying supply chains.