Treasury secretary reveals 'peace deals' with China as rare earth supplies set to flow

Treasury Secretary Scott Bessent revealed new details about the reported trade deal struck between the U.S. and China, adding that he's now seen "de-escalation" firsthand.

"This is what leadership looks like under President Trump. We've got peace deals, we've got trade deals, we've got tax deals. And in dealing with the world's second-largest economy, we approached each other with mutual respect," Bessent said in an interview on "Mornings with Maria" Friday.

"Part of the agreement was tariffs coming down and rare earth magnets starting to flow back to the U.S. They form the core of a lot of our industrial base. They were not flowing as fast as previously agreed," Bessent explained.

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"And I am confident now that, as agreed, the magnets will flow. In the meantime, we had put countermeasures versus the Chinese in place. We had held back some vital supplies from them. So what we're seeing here is a de-escalation under President Trump's leadership."

It was announced about two weeks ago after talks in London that the U.S. and China have reached a "framework" to implement a trade deal struck between the two sides originally in Geneva.

President Donald Trump then posted on Truth Social that "our deal with China is done, subject to final approval with President Xi and me."

The development comes after President Trump leveled tariffs as high as 145% on Chinese goods following the president's reciprocal tariff plans in April, when China retaliated against the U.S. with tariffs of its own. The U.S. and China announced a 90-day détente that involved reduced tariffs in May, but both sides had accused each other of running afoul of the deal.

"The important thing to note here is, this is the centerpiece of making trade more fair for American workers, for the American people. And this is happening across the entire spectrum with our trading partners," Bessent said.

"So, in the first 100 days, we set the table for the peace deals, the trade deals and the tax deals. And now, in this 100 days, we're bringing them all home," the secretary continued. "But this is the centerpiece of fair trade, which is something we haven't seen in the U.S. in 40 years."

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Bessent noted that when it comes to China, America can embark on a strategic decoupling or convince the exporting nation to consume more.

"China accounts for 30% of the manufacturing in the world, and that's not sustainable," he said. "So, we will see if they want to be a responsible partner. My sense is they do. As I mentioned, President Trump, Party Chair Xi, they have a very good relationship, so it's very helpful to have the leadership there constantly speaking."

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FOX Business’ Greg Norman contributed to this report.