Today’s Key Takeaways: Oil up on US/EU Tariff Agreement. Buy US LNG and make a trade deal. Apple invests in US rare earth supply chain.
OIL:
Oil Prices Climb as U.S. and EU Reach Historic Tariff Agreement
Charles Kennedy, July 27, 2025
- The U.S. and EU agreed to a 15% tariff on EU goods, down from a threatened 30%, and the EU pledged $750 billion in U.S. energy purchases.
- Oil prices climbed as markets responded positively to the deal, which includes zero tariffs on select American exports.
- While hailed as a stabilizing move, the agreement drew criticism from European industries facing new tariff burdens.
GAS:
Want a trade deal? Buy some American LNG.
Brian Dabbs, Carlos Anchondo, E & E News, July 25, 2025
New gas purchase commitments are helping foreign trade partners avert a wave of U.S. tariffs set to take effect Aug. 1.
U.S. gas exports are getting a boost from their role as a key bargaining chip in the Trump administration’s trade negotiations.
Fresh off wins for the fossil fuel sector in the Republican megalaw, the Trump administration is now pushing hard in the talks for countries to buy U.S. fossil fuels, most notably natural gas that’s liquefied for easy export over long distances.
New gas purchase commitments from foreign trade partners are helping to avert a wave of U.S. tariffs set to take effect Aug. 1. Commerce Secretary Howard Lutnick said in recent days that the final sprint on trade talks will be “for the record books,” adding that countries will be hit with tariffs in August if deals aren’t reached.
“LNG is playing a significant role in the bilateral trade talks,” Mark Menezes, president of the U.S. Energy Association trade group and a former Department of Energy official in Trump’s first term, said in an interview. “It’s certainly a way to address the trade imbalance and also the potential tariffs.”
As of last week, 14 binding deals and seven tentative ones have been signed this year for U.S. LNG, said Talon Custer, an energy equity analyst at Bloomberg Intelligence.
This week, President Donald Trump announced new trade deals with Japan and Indonesia and deals with Malaysia and the European Union appear close. While Trump is touting the deals as major breakthroughs for U.S. industry, they are not the traditional, all-encompassing free trade agreements that typically take months or years to negotiate and enact into law with congressional approval.
Still, on Tuesday, Trump said the United States had reached a trade agreement with Japan that will include a “major expansion of U.S. energy exports.”
He said the United States and Japan are likely forming a “joint venture” in Alaska around LNG, telling Interior Secretary Doug Burgum to “set that up.” Trump has been talking about the potential venture for months.
MINING:
Apple Invests in U.S. Rare Earth Supply Chain
Institute for Energy Research, July 24, 2025
Key Takeaways
- Apple signed a $500 million, four-year deal with MP Materials for rare earth magnets.
- The MP-Apple deal guarantees Apple a steady flow of rare earth magnets free from China’s control and reduces the long-term risk of losing access should China mount magnet restrictions in the future.
- The backing from Apple comes after MP, which operates the only U.S. rare earths mine, agreed to a multibillion-dollar deal with the U.S. Department of Defense that will make the federal government MP’s largest shareholder and provide a financial backstop for MP.
According to Reuters, Apple has signed a $500 million, four-year agreement with MP Materials to secure a steady supply of rare earth magnets, a move aimed at reducing supply chain risks after China imposed export restrictions earlier this year. MP Materials, which runs the only rare earths mine in the U.S., recently entered a multibillion-dollar partnership with the Department of Defense, making the federal agency a major stakeholder. The deal ensures Apple access to rare earth magnets independent of China, the dominant global supplier. Given Apple’s heavy reliance on these components for products like the iPhone’s haptic engine, as well as audio equipment and microphones, the investment strengthens its long-term supply security in case of further Chinese export limits.
Additional reporting from Reuters notes that as part of the deal, Apple will prepay MP Materials $200 million for a future supply of magnets from the company’s Texas facility, which is expected to begin operations in 2027. The agreement also includes plans to build a new recycling facility at MP’s Mountain Pass site in California, where materials from discarded electronics will be recovered and reused in future Apple products. Additionally, Apple and MP plan to construct another factory in Fort Worth, Texas, to manufacture magnets for use in Apple devices and other electronics globally. The companies have not disclosed the specific volume of magnets covered by the agreement.