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U.S.–China Truce Eases Rare‑Earth Tensions as Tariff Hikes Are Put Off for a Year

Beijing is preparing year‑long general licences to speed exports, with earlier restrictions still in place.

Overview

  • The Federal Register details a U.S. commitment to keep heightened reciprocal tariffs suspended until November 10, 2026, following the TrumpXi talks in Busan.
  • Washington’s document says China agreed to postpone and effectively eliminate coercive rare‑earth controls, but Chinese authorities have not publicly confirmed such a rollback.
  • China has paused the October 9 expansion of rare‑earth curbs for one year and, according to industry briefings, is designing streamlined licences that could take months to implement and may be tougher for defense‑linked users.
  • Reuters reports the new permits are expected to be valid for a year and allow higher volumes, while April rules that disrupted supply chains are viewed by industry sources as still in force.
  • Official data show China’s rare‑earth exports rose 9% in October to 4,343.5 tons, and state‑linked media report new export controls on silver, antimony and tungsten, indicating continued targeted use of trade measures.