In October, the Chinese government introduced new export controls on key dual-use items, citing national security concerns. The move affected the export of rare earths which are critical to all aspects of modern life (such as mobile phone, computers and EVs) (Click here to read about this). China manufacturers 80% to 90% of the world’s rare earths.
In response, US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods and export controls on “critical” software beginning Nov. 1. These measures would come on top of the existing 30% tariff already in place.
Within two weeks the two leaders met, and the result was that Trump told reporters while heading home on Air Force One that he had agreed to cut his 20% tariff increase, imposed over China’s role in producing fentanyl and chemicals used to make it, to 10%. China confirmed that will take average tariffs on Chinese goods to 47%, down from 57%.
In addition, Trump said the Chinese side has committed to buying “a tremendous amount” of American soybeans, sorghum and other farm products. The Chinese side did not provide any details, but U.S. Treasury Secretary Scott Bessent later said China had agreed to buy 25 million metric tons of U.S. soybeans annually as part of the agreement.
Source: MSN: Read The Article
PSR Analysis. Leaving aside the rhetoric from President Trump, the meeting showed the bargaining strength that China possesses in relation to rare earths. It also may have bought the USA some time to establish alternative sources of rare earths. PSR
Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research
