US-China magnet deal still on hold

Nearly two weeks after President Donald Trump announced a trade agreement with China, American businesses are still waiting for details on when they’ll receive critical magnets from China. The deal, which Trump called “done,” was meant to restart the flow of these essential materials, but companies remain unclear about the timeline and whether the U.S. will ease restrictions on other exports in return.

The agreement followed intense trade talks, with both sides aiming to resolve tensions over rare earth magnets, vital for industries like electronics and renewable energy. However, progress has stalled, leaving U.S. firms in limbo. China’s exports of these magnets dropped sharply in May, partly due to new U.S. tariffs on small parcels, which have reduced shipments.

This has raised concerns about supply chain disruptions for American manufacturers. While Trump hailed the deal as a major win, some experts see it as a return to earlier trade terms rather than a breakthrough. China’s leader, Xi Jinping, has stayed quiet on the matter, focusing instead on avoiding further U.S. tariffs. Meanwhile, U.S. negotiators are pushing to bring critical supply chains back home, reducing reliance on foreign sources.

For now, businesses are left guessing about when or if the magnet shipments will arrive. The uncertainty is frustrating industries that depend on these materials, and the lack of clear communication from both governments isn’t helping. As talks continue, the hope for a quick resolution fades, leaving companies to navigate an unclear path forward.