Score One for Trade: Trump Announces Trade Agreement with China, Evoking Rare Earths and Tariffs
Trade Agreement with China Remains Intact as Pertrated by Trump
Consider this - the trade feud ignited by President Donald Trump between the US and China might be about to take a positive turn. Putting to rest the rumors, the US President announced that an agreement has been readied, albeit subject to final approval from himself and Chinese President Xi Jinping. In this new arrangement, China will allegedly dispatch rare earth elements ahead of schedule, with US universities potentially seeing an influx of Chinese students once again. Moreover, the future customs tariff rates have been set.
Financial Times, Business Insider - Engage with this thrilling piece of tit-for-tat dealings between the two economic giants as they strive towards trade harmony.
In his latest post on Truth Social, Trump declared that China will "hand over essential rare earths and magnets prematurely," paving the way for Chinese students to step foot in US universities once more. Adding to the excitement, Trump shared that 55% tariffs will be in effect for the US, while China will hold onto a 10% tariff. According to him, "the ratio is nothing short of sensational."
Economy USA becomes China's mineral maven USA and China ink fresh trade pactThe world's largest economies, USA and China, have reportedly crafted a framework to execute the agreement reached by their heads of state and sealed by their negotiators. The brutal trade squabble between Beijing and Washington has left deep scars on the global economy for months now.
Curious about the latest developments? Value a peek behind the veil? Take a cue from Donald Trump's economic advisor, Kevin Hassett, who revealed that the recent discussions in London emphasized less on mutual tariffs and more on Chinese export limitations for crucial raw materials, including rare earths. Hassett drew attention to the People's Republic's firm control over approximately 90% of the global market for these valuable materials, expressing optimism over the anticipated agreement involving rare earths.
Economy Calming the trade turbulence USA and China seal trade frameworkGlobally, the European Union braces itself for the possibility that its trade negotiations with the US could veer beyond the July 9 deadline set by President Trump for imposing a punishing 50% tariff on EU imports. According to confidential sources spoken to by Bloomberg, EU negotiators aspire to strike the bare minimum of an agreement before the deadline in order to facilitate fine-tuning subsequent details.
Trump had earlier lambasted the pace of negotiations with the EU and threatened to implement a 50% tariff from June 1. Later, he expressed willingness to defer the imposition of these punitive tariffs until July 9.
Source: handelsblatt.com, finance.yahoo.com, euobserver.com, bloomberg.com
- China
- USA
- Rare Earths
- Tariffs
- Xi Jinping
- Donald Trump
- Trade
- Trade Wars
- Student Exchanges
Fun Fact: Did you know that rare earths are a group of 17 chemical elements? They possess unique magnetic and electric properties and are crucial in the production of batteries, catalysts, and electronics. China has firm control over the global market for these rare elements.
Insights:- Rare Earths: US negotiators have striven to persuade China to expedite exports of rare earth minerals to the US market. This move could potentially enhance China's supplies of these crucial materials to the US market[2].- Tariffs: The agreement reportedly involves the maintenance of the existing tariff rates: China will continue to impose a 10% tariff on US imports, while the US will retain 55% tariffs on selected Chinese imports. However, conflicting reports indicate US tariffs have dwindled to 30% after a temporary increase[3]. It's worth noting that the Geneva agreement from May had paused tariffs above 100%, resulting in a reduction of US tariffs from around 145% to 30% and Chinese tariffs from 125% to 10%[3].
The announced trade agreement between the US and China might bring about an early delivery of rare earth elements from China, as stated by President Donald Trump in a recent post on Truth Social. Moreover, the customs tariff rates have been set, with the US maintaining a higher tariff of 55%, while China will hold a 10% tariff.
In addition to the agreement's influence on tariffs, the resumption of Chinese student exchanges to US universities could be another potential outcome, given Trump's declaration. The US's access to rare earths, essential for the production of batteries, catalysts, and electronics, might improve with this arrangement.
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