Breakthrough in the customs dispute: USA and China reduce export restrictions!

Breakthrough in the customs dispute: USA and China reduce export restrictions!

London, Vereinigtes Königreich - On June 11, 2025, the USA and China made significant progress in its trade relationships. A breakthrough in the talks that took place in London could now lead to reducing export restrictions on rare earths. This critical raw material is dominated by China, which controls around 90 percent of the global market. The negative effects of the lengthy trade conflict on the global economy were also discussed in the negotiations. The formal approval of US President Donald Trump and China's head of state XI Jinping is still pending. This reported [OE24] on the location.

The focus of the talks was on the export restrictions that China had introduced in April for seven rare earths and special magnets. Since then, companies have been confronted with an elaborate approval process that was concerned worldwide. The US Finance Minister Scott Bessent and Minister of Commerce Howard Lutnick were among the representatives who were present in these talks, while on the other hand, China's Prime Minister He Lifeng and Minister of Commerce Wang took Wentao.

Details of the agreement

china has undertaken to deliver certain raw materials, especially rare earths, to the United States. In return, the United States assures that students from China continue to be admitted to US universities. In addition, Trump announced a customs regulation, with tariffs for imports from China 55 percent and China raised 10 percent in return. This regulation is part of the broader trade talks that also affect the customs increases that were previously introduced as part of the customs dispute between the two nations. According to [FAZ] this would be a possible progress that could be an advantage for both sides.

china increased the tariffs on goods from the United States to up to 145 percent, while the United States imposed against duties to Chinese imports of up to 125 percent. A recently impending reduction of the tariffs could be a positive turn in the trade relationship. In the course of this agreement there is an agreement in Geneva, which enables temporary reduction in tariffs for 90 days.

The geopolitical implications

The new trade dynamics could also have an impact on other areas of global trade. For example, the European Union is open to discussions about reducing tariffs to fertilizer imports from the USA in order to reduce their dependence on Russian fertilizers. This could significantly increase the sales figures for US fertilizers in Europe, which could also have positive economic effects for both countries. According to [Institute of Rare Earth], a new approach in the trade war between the United States and China is of great importance, especially in view of the global economic uncertainties.