After Trump's Talk with Xi, US Aims for Rapid Deal with China on Rare Earths
U.S. Explores Accelerated Extraction Strategies in Collaboration with China for Scarce Rare Earth Elements
Let's break it down, mate. Following a chat between Donald Trump and Xi Jinping, the Yanks are eyeing a speedy agreement with the Beijing boomers on rare earth matter. According to the Yank team, the export ban on rare earths might be lifted once more today in London town. Negotiations are supposedly happening.
The Yanks are aiming to secure a fundamental pact on rare earths in their trade tussles with China. They're hopeful for a sort of handshake deal at the London powwow, which would tie up the deals made by Trump and Xi. "The purpose of today is to ensure they're serious, but also to shake hands," Kudlow, Trump's economic advisor, told CNBC.He reckons the easing of export controls and the release of bilge loads of rare earths would be immediate post-handshake. A quick meet-up is on the cards.
Economist Grimm Urgently Pushes for Strategy on Rare Earths
The worldwide economic heavyweights began their swords clashing late in the afternoon. Investors are all philosophical about further defusing in the trade tussle. Since Trump took the White House again, he's been bawling about more tariffs against China, always resulting in Chinese countermeasures. In mid-May, however, a 90-day truce and significantly reduced tariff rates were worked out.
Global Supply Chains Marred
The Yank gang in London should include Steven Mnuchin, Wilbur Ross, and Robert Lighthizer. The Chinese side is expected to be led by Vice Premier Liu He. Yank representatives have repeatedly complained that China hasn’t stuck to its promises on supplying rare earths. Trump recently declared that Xi had agreed to rekindle the supply of mineral and rare earth magnets to the States.
China's decision to put a halt on the export of a range of critical minerals and magnets in April had stirred up a fuss in global supply chains. Companies operating in the automotive, aerospace, semiconductor, and defense sectors had a mare of a time.
- China
- US
- Tariffs
- Trade
- Trade Disputes
- Trade Relations
- Rare Earths
- Donald Trump
- Xi Jinping
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Recent skirmishes suggest that after Donald Trump's convo with Xi Jinping, a truce has been struck between the US and China regarding the export of rare earth minerals and magnets to the US. This follows two months of supply issues, which had impacted US automakers and global supply chains[1].
Experts describe the truce as a beneficial move toward restoring access to crucial rare earths' supply, but they warn that the temporary nature of the truce stems from the lingering instability in US-China trade relations[1]. China has previously used its control over rare earths as a bargaining chip, and the broader trade scene remains precarious[1].
Details spilled by Trump suggest that under the new deal, the Yanks will wear 55% tariffs, while the Chinese will don 10% tariffs. Trump has christened the relationship between the two nations as 'excellent' in light of the deal[2]. However, experts stress that the long-term solution to the US rare earths conundrum lies in the development of alternate supply chains—through the expansion of domestic mining, refining, and magnet manufacturing, and partnerships with other countries. Until such alternatives are properly established, China will retain significant control over the Yank economy in this sector[1].
- The negotiated truce between the US and China, as facilitated by a conversation between Donald Trump and Xi Jinping, is aimed at resolving issues surrounding the export of rare earths.
- Despite the agreement, experts emphasize that the temporary nature of the truce underscores the continued instability in US-China trade relations, with China continuing to hold significant influence over the US economy in the rare earths sector, necessitating the development of alternate supply chains.
