Trump's first 'Made in the USA' triumph won't be the iPhone
TAIPEI -- At Foxconn's manufacturing hub in Houston, Texas, hundreds of construction workers and engineers are working tirelessly to expand the Taiwanese company's capacity for building artificial intelligence servers in the U.S.
The key Nvidia supplier is undertaking this massive expansion to produce a significant proportion -- in the double digit percentage range -- of its graphic processing unit (GPU) modules and GPU board on American soil, Nikkei Asia has learned. It currently makes more than 90% of these critical components in Taiwan.
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Nikkei Asia
28 minutes ago
- Nikkei Asia
US-China trade truce leaves businesses still facing daunting tariffs
NEW YORK -- The trade deal the U.S. and China hammered out in London this week still leaves American importers saddled with heavy tariff burdens and uncertainty on how to conduct their business, after President Donald Trump said levies of up to 55% would continue to be charged on Chinese goods. Trump on Wednesday also said he will be sending letters informing other countries of unilateral tariff rates in the next couple of weeks.
Japan Today
2 hours ago
- Japan Today
Critical minerals give China an edge in trade negotiations
A town is built among the hills near Ganzhou in southern China's Jiangxi province on March 19. By SIMINA MISTREANU China's dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they have a framework to pursue a deal. China has spent decades building the world's main industrial chain for mining and processing such materials, which are used in many industries such as electronics, advanced manufacturing, defense and health care. Mines and factories in and around Ganzhou, a key production hub for rare earths, underpin China's control over the minerals. Many residents grew up collecting rocks containing the valuable minerals from the forested hills surrounding the southern city and today make a living from mining, trading or processing them. Responding to ever higher tariffs and other controls on advanced technology, China told exporters of certain key rare earths and other critical minerals to obtain licenses for every shipment abroad. Approvals can take weeks, leading to supply chain disruptions in the U.S. and other countries. President Donald Trump said Wednesday that China would make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world's two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses. But details remain scarce. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it. The Chinese Commerce Ministry said Saturday it had approved a 'certain number' of export licenses for rare earth products, apparently acknowledging Trump's personal request to Xi during a phone call last week. And on Wednesday, the Ganzhou-based rare-earth conglomerate JL MAG Rare-Earth Co. confirmed it had obtained some export licenses for shipments to destinations including the U.S., Europe and Southeast Asia. Experts say, however, Beijing is unlikely to do away with the permit system enabling it to control access to those valuable resources. The only scenario in which China might deregulate its critical minerals export is if the U.S. first fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government's earlier stance. 'Without that,' he said, 'it will be difficult to blame China for continuing to strengthen its export controls.' In 1992, Deng Xiaoping, the leader who launched China's ascent as the world's biggest manufacturing power, famously said 'the Middle East has oil, China has rare earths,' signaling a desire to leverage access to the key minerals. Several generations later, Beijing has made its rich reserves of rare earths, a group of 17 minerals that are abundant in the earth's crust but hard, expensive and environmentally polluting to process, a key element of China's economic security. In 2019, during a visit to a rare earth processing plant in Ganzhou, Xi described rare earths as a 'vital strategic resource.' China today has an essential monopoly over 'heavy rare earths,' used for making powerful, heat-resistance magnets used in industries such as defense and electric vehicles. The country also produces around 80% of the world's tungsten, gallium and antimony, and 60% of the world's germanium -– all minerals used in the making of semiconductors, among other advanced technologies. The risks of dependency on Chinese suppliers first came into focus in 2010, when Beijing suspended rare earths exports to Japan due to a territorial dispute. The ban was lifted after about two months, but as a precaution, Japan invested in rare earths processing plants in other countries and began stockpiling the materials. Beijing's across-the-board requirement for export licenses for some critical minerals has put pressure on world electronics manufacturers and automakers. Some auto parts makers in Europe have shut down production lines due to delays in supply deliveries, according to the European Association of Automotive Suppliers. In the U.S., Tesla CEO Elon Musk said a shortage of rare earths is affecting his company's work on humanoid robots. In the drab industrial hub of Ganzhou, cradled by the scenic Dayu Mountains, the U.S.-China trade war is still a distant stressor. Miners and small mineral traders interviewed by The Associated Press said they are more concerned about depleting the mountains' once-abundant resources. Zhong, a tungsten factory manager in Ganzhou who would only give his last name, worked his way up to manager from a miner, but he's unsure there is a future for him and others in the industry. 'I find growing difficulties to source tungsten these days,' he said, adding that smaller mines and trading companies are slowly disappearing as the resources are dwindling. Tungsten is an ultra-hard metal used in armor-piercing ammunition, nuclear reactors and semiconductors. At least five tungsten mines have closed in the area in recent years, according to state media. Remaining reserves are deeper and harder to extract and process after decades of exploitation, said Li Shangkui, chairman of the Ganzhou-based Jiangxi Yuean Advanced Materials Co., Ltd. Processing factories in Ganzhou now routinely source materials from other provinces or other countries. Zhong's plant imports some raw materials from places like Africa and Cambodia. Major state-owned and private companies in Ganzhou are also ramping up investments abroad. Tungsten producer Ganzhou Haisheng, for instance, announced last year a $25 million investment in a new tungsten plant in Thailand. Whatever the challenges in procuring raw materials, China likely will seek to maintain its dominance in critical minerals, said Fabian Villalobos, an engineer and critical minerals expert at the RAND think tank. Between 2020 and 2023, the U.S. imported at least 70% of the rare earth compounds it used from China, according to the U.S. Geological Survey. It has diversified its sources in recent years, but still mainly relies on China. Since beginning his second term in office, Trump has made improving access to critical minerals a matter of national security. But the U.S. has an incredibly long way to go to catch up with China, experts say. The sole operational U.S. rare earths mine, in Mountain Pass, California, is unable to separate heavy rare earths. It sends its ore to China for processing. The U.S. Defense Department has provided funding to the mine's owner, MP Materials, to build new separation facilities. It will take months to build and still only produce a fraction of what is needed. Friction over the issue has opened the way for government-backed financing that was unavailable before, said Mark Smith, who ran the Mountain Pass mine in the early 2010s and now leads NioCorp. It's seeking about $780 million in financing through the U.S. Export-Import Bank to build a processing facility in Nebraska for critical minerals including rare earths. The Defense Department has committed $439 million to building domestic rare earth supply chains, but building a complete mining and processing industrial chain like China's could take decades. 'There are going to be some real issues here unless we can figure out how to get along with China for a period of time while we're developing our own resources and our mainstream processing,' Smith said. The spotlight on critical minerals also provides opportunities for smaller miners to invest in extracting and processing some critical minerals, such as tungsten, considered 'niche' because they are needed in relatively small amounts in key industries, said Milo McBride, an expert on sustainability and geopolitics at the Carnegie Endowment for International Peace. 'For many of these companies, the business strategy hedges on a scenario where the U.S. and China become more confrontational and where trade relations become more uncomfortable,' McBride said. 'And all of a sudden, what was once an uneconomic project somewhere outside of China starts to make more sense.' Associated Press news researcher Shihuan Chen contributed to this story. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Yomiuri Shimbun
3 hours ago
- Yomiuri Shimbun
Trump Says US Gets Rare Earth Minerals from China and Tariffs on Chinese Goods Will Total 55%
The Associated Press President Donald Trump speaks to reporters after arriving on Air Force One, Tuesday, June 10, 2025, at Joint Base Andrews, Md. WASHINGTON (AP) — President Donald Trump announced Wednesday that China will make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world's two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses. Trump's comment on social media came after two days of high-level U.S.-China trade talks in London. Details remain scarce. Trump didn't fully spell out what concessions the U.S. made. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it. What Trump described as a 'deal' is actually less than that: It's a 'framework' meant to set the stage for more substantive talks. And Trump's own comments created confusion about what was happening to his taxes – tariffs — on Chinese imports, generating uncertainty about more than $660 billion in annual trade between the two countries. On social media, Trump declared: 'WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!' But a White House official, who was not authorized to discuss the terms publicly and insisted on anonymity to describe them, said the 55% was not an increase on the previous 30% tariff on China because Trump was including pre-existing tariffs, including some left over from his first term. 'We have no idea what the rules are,' said Rick Woldenberg, CEO of the educational toy company Learning Resources, who is part of a lawsuit challenging Trump's authority to impose the tariffs. In a follow-up social media post, Trump said he and Xi 'are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!' The framework emerged late Tuesday in London after intense talks involving U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Rep. Jamieson Greer. Leading the Chinese delegation was Vice Premier He Lifeng. Since returning to the White House in January, Trump has deployed tariffs aggressively, seeing them as a way to raise money for the federal government, protect American industries, lure factories back to the United States and pressure other countries into bending to his will. He has imposed baseline 10% tariffs on imports from almost every country on earth after having introduced and then suspended for 90 days bigger tariffs on countries based on the size of U.S. trade deficits last year. To American trading partners and to businesses calculating their import tax bills, the president's mercurial approach to trade policy can be baffling. For example, he recently doubled his steel and aluminum tariffs to 50%, likely increasing costs for U.S. manufacturers and construction companies that rely on the metals as raw materials. Likewise, he threatened a 50% tariff on the European Union under the belief that it would jumpstart talks with the bloc, only to back down as his self-imposed 90-day negotiating period is set to expire around July 9. But his approach to China has been especially bewildering. After imposing a 20% tariff on Chinese imports, the American president quickly upped the ante, raising the levy to 54% to offset what he said were China's unfair trade practices. Then, enraged when China retaliated with tariffs of its own, he increased those levies to a staggering 145%. Beijing counterpunched with 125% tariffs on U.S. imports. Those triple-digit tariffs threatened to effectively end trade between the United States and China, causing a hair-raising selloff in financial markets. At a meeting in Geneva last month, the two countries agreed to back off: America's tariffs went back down to a still-high 30% and China's to 10%. In April, the Chinese announced licensing requirements that slowed the supply of desperately needed rare earth minerals to the United States. Furious about the move, Trump threatened to call off the Geneva arrangement, setting the stage for talks Monday and Tuesday in London. And there the Chinese agreed to speed up the rare earths shipments. The agreement came as an international rights group said that several global brands are among dozens of companies at risk of using forced labor through their Chinese supply chains because they use critical minerals or buy minerals-based products sourced from the far-western Xinjiang region of China. The report by the Netherlands-based Global Rights Compliance says companies including Avon, Walmart, Nescafe, Coca-Cola and Sherwin-Williams may be linked to titanium sourced from Xinjiang, where rights groups allege the Chinese government runs coercive labor practices targeting predominantly Muslim Uyghurs and other Turkic minorities. Many analysts complained that all the drama hadn't accomplished much. Dan Kritenbrink, who was assistant secretary of state for East Asian and Pacific Affairs in the Biden administration, said the London meeting produced 'a fragile truce.' 'Both sides have now demonstrated that they know where the other's weak points are,' said Kritenbrink, now a partner at the Asia Group. 'They demonstrated that they both have leverage and tools they can use to inflict damage on the other.' The Chinese know that when it comes to rare earths they 'can turn that spigot on and off at will… They really have incredible leverage over the United States in the global economy with rare earths, and they're not afraid to use it.' Still, he welcomed the London ceasefire because 'the alternative is no truce at all, and a supply chain war that threatens not just U.S. and Chinese economies but the global economy as well.' Danny Russel, vice president for international security and diplomacy at the Asia Society Policy Institute, said Trump's latest pressure campaign on China appeared to 'be ending with a whimper, not a bang.' 'The U.S. found it needed to back off the restrictions it had thought would generate leverage,' he said, 'and in exchange, they get merely a promise by the Chinese to dole out critical minerals a bit more quickly.' Veronique de Rugy, senior research fellow at George Mason University's Mercatus Center, dismissed the London truce as 'a handshake deal … It can change at any time.'
