US, China Reach Deal to Resume Rare Earth Shipments

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Photo:AP

The United States and China have made a new agreement to help restart the shipping of rare earth minerals from China to the US. These minerals are important because they are used in many technologies, like smartphones, electric cars, and defense equipment.

The deal came after trade talks started last month in Geneva, where both countries agreed to work together more closely to reduce the tension between them. Later, more discussions were held in London, and both sides agreed to a basic plan. This deal still needs final approval from China’s top leader.

A US official said that China would send the rare earth materials to the US, and in return, the US would remove some of the special taxes (called tariffs) it had placed on Chinese goods.

President Donald Trump said the agreement was already signed and could help avoid new tariffs that were planned to start on August 12. These tariffs could have made Chinese goods much more expensive in the US.

The White House also said the deal includes not just rare earth minerals, but also talks about removing some of the limits the US put on selling technology to China.

While China hasn’t officially confirmed the deal yet, experts say this agreement is a good step toward calming the ongoing trade fight between the two countries.

Meanwhile, Trump also said he’s working on more trade deals, including one with India. However, talks with India are still going on, and if they don’t finish a deal by July 9, new tariffs may be placed on Indian farm products.

Trump added that it’s not possible to make deals with every country right now and that some countries might just have to face higher tariffs.

International Trade