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Are the US and China finally moving towards some trade agreement? Chinese President Xi Jinping has consented to permit the export of rare earth minerals and magnets to the United States, according to US President Donald Trump‘s statement on Friday. This decision could potentially ease tensions between the two largest global economies.When questioned by a reporter on Air Force One about Xi’s agreement, Trump confirmed: “Yes, he did.”
According to a Reuters report, this development follows a rare telephone conversation between Trump and Xi the previous day, which addressed ongoing trade disagreements regarding this subject. Trump indicated the discussion had reached “a very positive conclusion” and stated that “there should no longer be any questions respecting the complexity of Rare Earth products.”Further indicating an improvement in relations, China has issued temporary export permits to rare-earth suppliers serving the three largest US automobile manufacturers, according to two sources with knowledge of the situation quoted in the report.Also Read | Donald Trump vs Elon Musk: Who has more to lose – US President or world’s richest man? Stakes are high for both!Senior officials from both nations are scheduled to meet in London on Monday for additional discussions.Trump informed reporters on Friday about significant progress in negotiations with China.Following discussions in Geneva, Switzerland on May 12, both nations agreed to a 90-day suspension of their reciprocal high-percentage tariffs, which had been implemented by Trump. The announcement positively influenced financial markets, which had been concerned about trade interruptions.However, China’s April suspension of exports for essential minerals and magnets continues to affect global supply chains, impacting automakers, semiconductor producers and defence contractors.Trump alleged Chinese breaches of the Geneva accord and implemented restrictions on chip-design software and other Chinese-bound exports. Beijing dismissed these accusations and warned of retaliatory actions.Also Read | ‘Give your best offers by…’: Donald Trump administration pushes countries to urgently finalise trade deals as tariff deadline loomsChina maintains strategic control over rare earths and critical minerals, potentially affecting Trump’s position as domestic economic performance could decline if manufacturers lack access to these mineral-dependent components.Trump’s erratic policy decisions on international trade since his White House return in January have created uncertainty amongst global leaders and the business community. His pattern of announcing strict trade penalties against various nations, followed by sudden withdrawals of these threats, has left both international counterparts and corporate executives perplexed about the administration’s actual stance.
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