Trade Tensions Ease as Trump Secures Rare Earth Agreement

In a surprising turn of events, U.S. President Donald Trump revealed on Friday that a pivotal agreement has been reached with Chinese President Xi Jinping. The agreement would see the resumption of rare earth minerals and magnets flowing into the United States, which could markedly ease the heightened trade tensions between the two economic giants.

The announcement, made aboard Air Force One, came after Trump's rare telephonic discussion with Xi to address the ongoing trade strife. Trump described the talks as reaching "a very positive conclusion," and stated emphatically that questions surrounding the intricate nature of rare earth products should finally be put to rest.

Adding weight to the resolution, China's temporary grant of export licenses to top U.S. automakers is seen as a sign of thawing tensions. While Trump's top aides are slated to meet their Chinese counterparts in London for further negotiations, the financial markets have reacted positively, anticipating stability after months of trade disruptions.

(With inputs from agencies.)