United States intensifies strategic focus on rare earth elements in potential conflict with China
Yo, listen up! Word on the street is that following a chat between former prez, Donald Trump, and China's big kahuna, Xi Jinping, the USA is hopeful for a quick resolution with the Middle Kingdom on rare earths. The US economic guru, Larry Kudlow, spilled the beans, saying a "handshake deal" is expected to go down in London, sealing the agreements made between our boy, Trump, and Xi.
Now, here's the lowdown: this handshake would signify the culmination of the negotiations. Immediately afterwards, control on those hard-to-find rare earths is expected to slip, and we're talking about a massive release! Kudlow mentioned that the goal for today's meet-up is to ensure the Chinese are all in, and also for a good ol' handshake to seal the deal.
Politics 101: Discussions between these behemoth economies started late in the afternoon. Peeps are crossing their fingers for some cool down in the trade beef. Since Trump stole the show at the White House, the Republican has slapped higher tariffs on China, and Beijing has retaliated like a boss. But, they reached a 90-day truce and agreed on lower tariff rates back in May.
Economy 101: Michael Grimm, economist extraordinaire, is urging the US to devise a strategy on rare earths due to mounting concerns. By the way, during a recent address, Trump made it clear that Monday sees negotiations with China for trade dramz.
The US team in London will have Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and US Trade Representative Robert Lighthizer on deck. The Chinese side will be led by Vice Premier Liu He. Key players have been accusing China of juking its promises on rare earths supply. Trump reportedly had a phone call with Xi, where he was promised China would start providing those necessary rare earth minerals and magnets to the US once more.
China's choice to pause exports of a heap of crucial minerals and magnets back in April caused chaos in global supply chains. Companies dealing with automobiles, aerospace, semiconductors, and defense are all feeling the heat.
Now, for more context, here's the deal: the most recent reports suggest there's no actual London meeting or handshake deal specifically related to the recent US-China rare earths agreement. The announcement so far has been through Trump's declaration, and key elements include:
- Rare Earths Supply: China is supposed to hook us up with essential rare earth materials for technology and defense sectors
- Student Visas: The US will let Chinese students enroll again in American universities
- Tariff Rates: The proposed agreement consists of a 55% tariff rate for US imports from China with Beijing getting a 10% tariff rate in return
- Current Status: The deal is described as done, but it's still awaiting final approval from both Trump and Xi[1].
[1] Citation needed but remember, this is the wild west of info!
- Politics: The high-stakes negotiations between the US and China, spearheaded by former President Trump and Vice Premier Liu He, have the potential to significantly impact not only trade politics but also general-news headlines.
- Economy: With the looming release of rare earth materials, economists, such as Michael Grimm, are urging the US to formulate an effective strategy, as the supply chain disruptions caused by China's earlier pause on exports continue to affect various industries like automobiles, aerospace, semiconductors, and defense.
