Score One for Trump: U.S. Hopes for a Swift Deal on Rare Earths with China, Following a Call with Xi
United States pursuing an aggressive approach in partnership with China to dominate global supplies of rare earth elements.
After a heart-to-heart with China's President Xi, Donald Trump's got his sights set on a speedy agreement. The big ticket item? Rare earths exports, slated to be back on the table today in London, according to the U.S. delegation. Negotiations are still cooking.
The furor is all about sealing a fundamental pact on rare earths in this trade brawl. A sorta unofficial handshake deal is what's in the pipeline in London. As per Larry Kudlow, the director of the National Economic Council, this'll wrap up the agreements rolled out between Trump and Xi Jinping. "This shindig's about showing they're serious, but also sealing the deal with a firm handshake," he told CNBC. Seems like export controls are set to loosen and rare earths will start flowing like crazy once the handshake's done. A quickie meet-up's on the horizon.
Political Pundit Grimm's Take: Strategy's key in the face of potential rare earths shortages.
The global economic heavyweights' talks commenced late in the afternoon. The vibe's rippling through investors: we're hoping for more de-escalation in the trade feud. Ever since Trump stormed back into the White House, America's been upping the ante on China, slapping on higher tariffs. China grooved with immediate counterattacks. However, a 90-day cooling-off period and significantly reduced tariff rates were slapped on in mid-May.
Econ 101: Trump Announces Trade Talks with China for Monday
The U.S. heavyweights - Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and Trade Representative Robert Lighthizer - are expected in London. Chinatown's representatives will be led by Vice Premier Liu He. The U.S. has been accusing China of snubbing its commitments on supplying rare earths. Trump's recently announced that Xi had agreed, in a call, to resume the flow of rare minerals and magnets to the U.S.
China's move to halt the export of a broad range of critical minerals and magnets in April has stirred up chaos in global supply chains for auto manufacturers, aerospace firms, chip producers, and military contractors.
Source: ntv.de, mau/rts
- Rare Earths
- U.S. – China Trade Conflict
- Global Supply Chains
- Donald Trump
- Xi Jinping
Enrichment:This deal's gotta cross Xi's desk for the green light. Trump's spilled the beans: China's agreed to provide the U.S. with rare earths and magnets upfront. In return, the U.S. is clears for Chinese students to kick their foot through the door again. Trump's also shared tariff tidbits: U.S.' share's 55%, China's 10%. Trump's being optimistic about the bilateral relationship: excellent[1]. The deal waits for official confirmation - no word yet on signatures or activation.
- The community policy regarding Chinese students' visa applications could potentially see changes, as Trump hinted at a relaxation in return for China's commitment to provide rare earths and magnets.
- The employment policy might be influenced by the outcomes of the US-China trade talks in London, especially regarding the export and import of critical minerals crucial for various industries, such as automotive, aerospace, technology, and defense, collectively defined as general-news politics in the global context.
