Trump's Trade Pact with China Unveiled: A New Chapter in Raw Materials Trade
Trade agreement with China remains intact, as per Trump's statement
Get the scoop on the latest development in US-China trade relations! The longstanding trade battle between the two major economic powers, instigated by President Trump, seems to be edging towards a resolution. In a recent rant on his Truth Social platform, Trump revealed that a deal is in the works, pending approval from both leaders.
According to Trump's post, China will ship vital rare earths and magnets ahead of schedule, paving the way for American universities to once again welcome Chinese students. The proposed tariff at custom heights is also laid out, with the US enjoying a 55% tariff and China walking away with a humble 10%. Trump acclaimed, "The ratio is boss!"
The Economic Lowdown
Word on the street is that the world's largest economies have finally agreed on a framework to implement the consensus reached by the leaders in their earlier phone call and the subsequent talks in Geneva. The ongoing trade standoff between Beijing and Washington has taken a toll on the global economy, with countless repercussions.
Kevin Hassett, Donald Trump's economic advisor, hinted that the talks underway in London since Monday would focus on overcoming Chinese export restrictions for rare earths. Last week, Kevin stated on CNBC that reaching a basic agreement on this issue was the ultimate goal of the talks. He pointed out that China controls a staggering 90 percent of the world's market for these rare materials and special magnetic materials. US President Trump expressed optimism following his phone call with China's boss man, Xi Jinping, that China would reinstate the supply of rare earths.
The EU Trade Talks Tick along Slowly
While the US keeps its fingers crossed for this deal, the EU is expecting its trade negotiations with the US to overrun the deadline imposed by President Trump of July 9, preempting a hefty 50% tariff on EU goods. EU negotiators are hopeful that a foundation for the agreement can be laid before the deadline, enabling further details to be worked out.
Trump recently chastised the pace of negotiations with the EU and threatened to apply a 50% tariff as soon as June 1. However, he later agreed to postpone the imposition until July 9.
Sources: ntv.de, mau/DJ/dpa
- China
- USA
- Rare Earths
- Tariffs
- Xi Jinping
- Donald Trump
- Trade
- Trade Conflicts
- Trade Relations
Fun Facts:
- Did you know that rare earths are critical ingredients in high-tech devices like smartphones, laptops, and electric vehicles? But don't worry, with this new deal things are looking up!
- The trade deal is being branded as a temporary solution, as developing alternative supply chains is the key to long-term stability. It's like popping a zit - it might provide short-term relief, but to truly fix the problem, you've got to dig deeper!
- Given the recent developments in the US-China trade standoff, it seems that both nations are considering revising their community and employment policies to support the influx of international students in American universities, as part of the trade pact, especially in regards to China's rare earth exports.
- As the ongoing trade negotiations and tariff implementations proceed, it is essential to understand the potential implications these policies may have on various sectors, including the high-tech industry, where rare earths are indispensable components for the production of advanced devices such as smartphones, laptops, and electric vehicles.
