The US Treasury Secretary Scott Bessent has urged Beijing to relax its export restrictions on rare earth magnets at a faster pace. He stated that the export volume of rare earth magnets from China has not yet returned to the level seen in early April.
In an interview with Fox News on Tuesday, Bessent was asked whether Beijing was allowing the US to access these critical export products, to which he responded, “We hope these materials can flow at a faster rate.”
Beijing’s export restrictions on rare earth magnets have intensified tensions between the US and China. The two sides reached a trade framework at the end of June aimed at easing the strained relations. As part of the agreement, China agreed to accelerate the export of rare earth magnets to the US, while the US would relax export controls on certain items in return.
“Rare earth magnets are still in circulation. But it’s not like before April 4th, but we believe that China will honor the agreement,” added Bessent.
According to US Secretary of State Howard Lutnick, the agreement includes Beijing’s commitment to provide rare earth minerals to key American industries such as chips, clean energy, and transportation once the materials start flowing from China, the US will lift the “countermeasures” implemented prior to the latest round of negotiations.
Bessent did not indicate on Tuesday whether the current amount of rare earth imports from China is sufficient to meet the terms of the agreement or enough to satisfy the conditions for lifting US countermeasures.
The agreement recently signed by the US included terms regarding China’s shipment of rare earths to the US. Lutnick mentioned in an interview with Bloomberg News last week that “they will ship us rare earths,” and once they do so, “we will lift the countermeasures.”
In trade negotiations held in Geneva in May, China pledged to lift non-tariff countermeasures imposed on the US since April 2nd. Back then, in retaliation to President Trump’s tariffs on Chinese goods, Beijing had suspended the export of various key minerals and magnets, affecting global car manufacturers, aerospace manufacturers, semiconductor companies, and military contractors.
Subsequently, the US imposed export bans on chemicals and chip technology to China, including bans on ethane exports used for plastic production in China, export restrictions on chip software, and jet engine materials.
Lutnick stated last Thursday that these restrictions would only be lifted once China starts exporting magnets.
Amidst the interview with the Treasury Secretary, the US is negotiating with trading partners to reach agreements by July 9th regarding tariffs that will be imposed on certain economic entities. Lutnick stated last week that the US government will finalize a series of trade agreements with approximately 10 “major” US partners, with other countries receiving letters outlining tariff levels.
Bessent mentioned on Tuesday that the US and India are “very close” to reaching an agreement. India’s chief negotiator has extended his stay in the US to resolve differences between the two sides.
Kevin Hassett, the Chairman of the National Economic Council, stated on Monday that agreements reached with various governments will be announced after July 4th, following the US Independence Day.