Trade Dispute: Trump Announces Agreement with China on Rare Earths - A Breakthrough or More Talks?
Trade Resolution: Trump Announces Compact with China on Strategic Minerals (Rare Earths) - U.S.-China trade negotiation: Trump confirms deal over rare earth elements.
In a surprising turn of events, US President Trump announced a tentative agreement with China on rare earths, a contentious issue in the ongoing trade dispute. "Our deal with China on rare earths is pending final approval from bothPresident Xi and me," tweeted Trump on his online network Truth Social.
This announcement comes after multiple rounds of negotiations in the British capital, with both parties claiming progress and a constructively cooperative exchange. However, Chinese deputy premier He Lifeng urged both sides to work towards reducing misunderstandings and strengthening cooperation, implying that more talks might be necessary.
Tensions between the two economic giants have been escalating since Trump took office, with China retaliating against Trump's tough tariff policy towards US trading partners with its own counter-tariffs. The situation led to a tariff rate of 145 percent on Chinese exports to the USA, and a 125 percent tariff in the other direction.
The next major hurdle appears to be the export of rare earths, crucial for advanced technologies like electronics, renewable energy technologies, and defense systems. China is the world leader in the processing of these metals, but the U.S. and other countries have sought to reduce their dependence on Chinese supplies.
When asked about the potential for restoring economic balance with China, US Treasury Secretary Bessent hinted that China could be a reliable partner in trade talks, provided it fulfills its part of the original trade agreement outlined in Geneva.
Meanwhile, the U.S. has been actively investing in domestic rare earth mining and processing, with the aim of reducing reliance on Chinese exports and enhancing global supply chain resilience. The focus has also been on developing strategic partnerships with countries like Australia and Canada to further diversify REE supplies.
As we await the final approval of the agreement, it remains to be seen whether this breakthrough will mark a turning point in the U.S.-China trade relationship or if it's just the beginning of more negotiations. One thing is clear - the focus on securing stable and diverse rare earth supplies will continue to be a key aspect of global trade and economic policy.
- China
- Donald Trump
- US President
- USA
- Trade Dispute
- Rare Earths
- Contentious Issue
- Xi Jinping
- London
- Beijing
- Students
- Geneva
- The announcement of a tentative agreement on rare earths, a contentious issue in the trade dispute between the United States and China, was made by US President Trump after negotiations in London.
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