12:41 PM EDT, 06/11/2025 (MT Newswires) -- China is imposing a six-month cap on rare-earth export licenses for US automotive and manufacturing companies, giving the country leverage if trade tensions escalate, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

China agreed to temporarily restore the licenses following the latest round of trade talks with the US, while the US committed to relaxing restrictions on sales of jet engines and related parts, along with ethane, the report said.

The trade agreement between the countries is subject to final approval from President Donald Trump and Chinese leader Xi Jinping, Trump said in a post on the Truth Social platform, according to the report.

China is expected to begin issuing licenses for rare-earth metals immediately, the WSJ reported.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)