In a sign of escalating tensions, China's government revealed earlier this month that it was cracking down on rare earth mineral exports to the U.S.

Yet in a move which has left his MAGA base cheering, President Donald Trump recently locked in a mineral deal with Australia. 

Agreement meant to boost production

That's according to Fox Business, which reported that Trump met with Australian Prime Minister Anthony Albanese at the White House on Monday.

The agreement involves both countries putting $1 billion over the next six months into rare mineral mining and processing facilities.

Trump, Australian PM sign $8.5B critical minerals deal to counter China dominance in rare earths https://t.co/3kfjfAOE5C

— FOX Business (@FoxBusiness) October 21, 2025

What's more, both countries will make regulatory changes by streamlining their respective permitting processes as well as establish minimum floor prices for the mineral in question.

Finally, the deal also lays out areas of cooperation, including on the mapping of geological features, recycling minerals, and restricting the sale of mining assets on national security grounds.

Minerals needed for an array of civilian and military product

"In about a year from now, we'll have so much critical mineral and rare earths that you won't know what to do with them," Trump was quoted as telling reporters.

Fox Business noted how rare earth minerals are essential for the production of smart phones, electric vehicle batteries, and military radar equipment.

A report published in January by the U.S. Geological Survey (USGS) showed that China's reserves of rare earth minerals stood at 44 million tons and the country's mines produced 270,000 tons last year.

In contrast, U.S. reserves stood at 1.9 million tons, with American mines producing 45,000 tons in 2024. Meanwhile, Australia had 5.7 million tons of reserves and its mines produced 13,000 tons of rare earth minerals.

Congressman says China has made "an economic declaration of war"

Monday's announcement from Trump and Albanese came roughly a week after a warning was issued by Michigan Republican Rep. John Moolenaar.

Moolenaar, who chairs the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, cautioned that China has made "an economic declaration of war" with its mineral export restrictions.

"China has fired a loaded gun at the American economy, seeking to cut off critical minerals used to make the semiconductors that power the American military, economy, and devices we use every day including cars, phones, computers, and TVs," Fox News quoted him as saying in a statement.