The fight over rare earths is escalating between the US and China
US President Donald Trump said that China is aware of the importance of rare earths export controls. “China is aware of the importance of the rare earth export controls. We are doing well with China,” Trump said. US has cut its base tariffs on goods from China to 30%, while China cut tariffs to 10%.
The US and China agreed on a temporary reduction in tariffs
The US is in talks with China to purchase more American goods, US Trade Representative Richard Bessent said. “Neither side wants a decoupling. We do want trade, we want more balanced trade, and I think both sides are committed to achieving that,” he added. The US and China have agreed to set up a consultation mechanism to address trade issues.
The U.S. and China have a deal to cut tariffs
China and the US have agreed to establish a consultation mechanism to continue discussing trade issues going forward, US Treasury Secretary Scott Bessent said on Monday. He added, “We concluded that we have shared interest and we both have an interest in balanced trade.” This comes after the US and China held two days of trade talks earlier this week.
The U.S. and China have begun talks in the aftermath of the Trump’s tariffs
USTreasury Secretary Scott Bessent has said that negotiations with China on trade have made “substantial progress” and more details would be announced on Monday. US and China have held two days of trade talks in Geneva. US Treasury Secretary Bessent said that the two sides had made “substantial progress”. Chinese Vice Premier He Lifeng is also participating in the talks.
China has reported 4% GDP growth in the first quarter
UBS has downgraded China’s growth forecast for 2025 to 3.4%, saying that the country’s stimulus programme might slow down due to the US-China trade war. It added that current tariff hikes remain and China rolled out additional stimulus. This comes after the US imposed new 25% tariffs on $200 billion worth of Chinese imports. China has retaliated with its own tariffs on US goods.
Trump’s economists have an answer on how much tariffs will raise prices
China said that it has lodged a WTO dispute complaint against the US, alleging that President Donald Trump’s tariffs on Chinese goods are discriminatory and violate WTO rules. China added 16 new US entities to an export control list, banning them from acquiring Chinese products designated as “dual use” for civilian and military purposes. Earlier, Trump announced 10% tariffs on virtually all imports from China.
There is a reason why it matters to carmakers
China has said the US tariffs “severely violate” World Trade Organization (WTO) rules and disrupt normal economic and trade cooperation between China and the US. The Chinese government added that the measures were “fairly modest”. It also said that the targeted goods represent about a twelfth of China’s total imports from the US.