Trump, Xi Weigh Rare Earth Truce as China Curbs Keep Prices Elevated

The U.S. and China are considering extending a truce on Chinese rare earth export restrictions at a leaders’ summit in the week of May 13, 2026, even as Chinese customs data show Beijing continues to limit shipments critical to defense, aerospace, semiconductors and electric vehicles. Exports of yttrium, dysprosium and terbium remain down about 50% since China imposed controls in April 2025 compared with the prior 12 months, despite a broader rebound in total rare earth exports. The restrictions were introduced in response to President Donald Trump’s tariffs and remain a point of tension after China’s October 2025 pledge to ease rare earth controls. Prices outside China have risen four- to fivefold for dysprosium and terbium and about 140-fold for yttrium, according to Argus. Japan has received just 4% of its prior-year dysprosium imports since April 2025, while Germany has received none, customs data show. Analysts said efforts by the U.S., Japan, Germany and others to diversify supply chains will take years.