WASHINGTON, June 27 — US President Donald Trump on Thursday signaled the possibility of a significant trade agreement with India, even as his administration finalized a new deal with China on rare earth exports aimed at easing trade tensions between the world’s two largest economies.
“We are having some great deals. We have one coming up, maybe with India. Very big one, where we are going to open up India,” Trump said while addressing supporters at the “Big Beautiful Event” at the White House.
Trump’s remarks came just as an Indian delegation led by Rajesh Agarwal, Special Secretary in India’s Department of Commerce and chief trade negotiator, arrived in Washington for the next round of bilateral negotiations. Officials from both countries are working to finalize a trade pact before July 9.
“Everybody wants to make a deal and have a part of it,” Trump told the audience. “Remember a few months ago, the press was saying, ‘Do you really have anybody of any interest?’ Well, we just signed with China yesterday, right?”
The US president also clarified that not every country would receive favorable trade terms. “We’re not going to make deals with everybody,” he said. “Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent.”
Meanwhile, a senior White House official confirmed that the United States had reached an understanding with China to resume expedited rare earth shipments—vital materials used in everything from electric vehicles to military hardware—after months of disruption triggered by tit-for-tat tariffs.
“The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official said, referring to negotiations held in May. As part of that framework, China committed to removing non-tariff measures imposed since April 2022, though details remain scarce.
China had earlier suspended exports of critical minerals and magnets in response to fresh US tariffs, throwing global supply chains into turmoil. These materials are essential to the automotive, aerospace, and semiconductor sectors, as well as defense contractors.
Bloomberg quoted US Commerce Secretary Howard Lutnick as saying, “They’re going to deliver rare earths to us,” and that once those deliveries begin, “we’ll take down our countermeasures.”
Sources told Reuters that China had already granted temporary export licenses to suppliers serving major US automakers, helping to ease some of the bottlenecks.
In a related development, Trump had earlier indicated that the US would also allow Chinese students back into American universities as part of the broader détente, in exchange for renewed access to key materials like rare earth magnets.
Industry experts note that China continues to treat rare earths as dual-use materials, carefully vetting buyers to prevent diversion to US military applications. That scrutiny has reportedly slowed licensing approvals.
While the US-China agreement marks progress after prolonged trade uncertainty, analysts caution that a full resolution between the rivals remains distant. Meanwhile, a prospective deal with India could mark another major shift in Washington’s global trade strategy—if finalized in the coming weeks.
