US Seeks Pause on Tariffs to Halt China Rare-Earth Controls

Treasury Secretary Scott Bessent proposed extending a pause on steep U.S. tariffs on Chinese goods in exchange for Beijing postponing its announced tightening of export limits on critical rare-earth elements.

Since earlier this year both sides have accepted successive 90-day truces covering duties that can reach as high as 145%, with the next deadline in November. The administration’s priority is to prevent China from moving ahead with stricter export controls that could constrict supplies of materials central to electronics, clean-energy technologies and defense manufacturing.

Officials are offering incentives to encourage a delay, while warning of sharp penalties if China proceeds. The negotiation sits alongside other trade frictions - from port fees to soybean exports and measures affecting subsidiaries - underscoring how tariffs and export rules are being wielded together to protect supply chains.

Markets and manufacturers will watch whether a tariff extension can buy time for a more durable, technical arrangement on rare-earth flows and licensing, or whether escalatory steps will resume after the next truce.