Latest news with #rareEarthMinerals
BBC News
21 hours ago
- Business
- BBC News
World Business Report Trade Talks: US and China meet in London
With trade tariffs slowing growth in China, the US wants to talk about rare earth minerals. We'll have the latest on trade negotiations in London. And there's plenty of food on the programme as we meet meat producers in Spain worried about US tariffs. We'll also hear how the cost of butter is soaring in New Zealand, even though much of it is made there.
Al Jazeera
a day ago
- Business
- Al Jazeera
US-China trade talks: Is a thaw on the cards after Trump-Xi call?
Top US and Chinese officials are meeting in London in a bid to defuse trade tensions over rare earth minerals and advanced technology after a phone call between Presidents Donald Trump and Xi Jinping last week. The two sides are aiming in Monday's talks to build on a preliminary trade deal struck in Geneva in May, which briefly lowered the temperature between Washington and Beijing and offered relief for investors battered by months of Trump's global trade war. Since then, the agreement to mutually suspend most of the 100 percent-plus tariffs for 90 days has been followed by barbs and accusations from both sides. But after reaching a tentative understanding with Xi on resuming the flow of critical minerals, Trump said on Thursday that he expected Monday's meeting to go 'very well'. The US delegation in London is headed by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. The Chinese contingent will be led by Vice Premier He Lifeng. The venue of the meeting has not been disclosed. Monday's meeting comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's January 20 inauguration. After the more than hourlong call on Thursday, Trump said the conversation was focused on trade and had resulted in a 'very positive conclusion' for both countries. In the first readout of the call, Trump posted on his social media site, Truth Social: 'I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal.' 'There should no longer be any questions respecting the complexity of Rare Earth products. Our respective teams will be meeting shortly at a location to be determined. During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated,' he added. For his part, Xi was quoted by Chinese state TV as saying after the call that the two countries should strive for a win-win outcome and dialogue and cooperation are the only right choice for both. In recent weeks, both sides have accused the other of breaching their deal made in Geneva and aimed at dramatically reducing tariffs – an agreement Trump touted as a 'total reset' after he announced tariffs on all US trading partners on April 2. The tentative truce struck on May 11 in Geneva brought US tariffs on Chinese products down from 145 to 30 percent while Beijing slashed levies on US imports from 125 to 10 percent. The agreement gave both sides a three-month deadline to try to reach a more lasting deal. Renewed tensions between the US and China began just one day after the May 12 announcement of the Geneva agreement to temporarily lower tariffs. The US Department of Commerce issued guidance saying the use of Ascend artificial intelligence chips from Huawei, a leading Chinese tech company, could violate US export controls. The agency warned companies 'anywhere in the world' against using AI chips made by Huawei, claiming they illegally contained, or were made with, US technology. Beijing publicly criticised Washington's move to limit access to American technology, accusing the US of trying to stymie China's ability to develop cutting-edge AI chips. On May 15, Chinese Ministry of Commerce spokesperson He Yongqian accused the US of 'abusing export control measures', adding that China would take steps to defend its business interests. Lutnick wasn't in Geneva last month, but he is a lead negotiator in Monday's talks in London. His Commerce Department oversees export controls for the US, and some analysts believe his participation is an indication of how central the issue has become for both sides. In response to Trump's April 2 tariff announcement, Beijing suspended exports to all countries of six heavy rare earth metals and associated magnets on April 4. The move upended global supply chains central to automakers, aerospace manufacturers and military contractors. China produces 90 percent of the world's rare earth minerals, which are essential components in permanent magnets – used in a swath of high-tech applications. Without mentioning rare earths specifically, Trump took to social media last month to attack China's trade restrictions. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted on Truth Social on May 30. After Xi and Trump's phone call last week, however, the Chinese government hinted that it is addressing US concerns, which have also been echoed by some European companies. On Saturday, China's Commerce Ministry said it had approved some rare earth exports, without specifying which countries were involved. It issued a statement saying it had granted some approvals and 'will continue to strengthen the approval of applications that comply with regulations'. On Monday, the rare earth suppliers of three big US automakers – General Motors, Ford and Stellantis – got clearance from Beijing for a handful of export licences. Washington wants access to as many rare earths as quickly as possible, Kevin Hassett, head of the National Economic Council at the White House, said on the CBS TV network's Face the Nation programme on Sunday. 'We want the rare earths, the magnets that are crucial for cellphones and everything else to flow just as they did before the beginning of April, and we don't want any technical details slowing that down,' Hassett said. Student visas don't normally figure in trade talks, but a recent US announcement that it would begin revoking the visas of Chinese students has emerged as another flashpoint between Washington and Beijing. On May 28, US Secretary of State Marco Rubio said the Trump administration would begin to 'aggressively' revoke the visas of Chinese university students. He also said the US would revise visa criteria to enhance scrutiny of all future visa applications from China and Hong Kong. China is the second largest country of origin for international students in the US after India. More than 270,000 Chinese students studied in the US in the 2023-2024 academic year. Beijing's Ministry of Foreign Affairs spokesperson Mao Ning criticised Washington's decision to revoke the visas, saying it 'damaged' the rights of Chinese students. Other concerns continue to strain the bilateral relationship from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated economic model. Still, Trump's geopolitical bluster goes well beyond China. While promising to reshape relationships with all US trading partners, Trump so far has reached only one new trade agreement – with the United Kingdom. Trump's reduction of US tariffs on Chinese goods runs out in August unless he decides to extend it. If deals aren't reached, the White House said Trump plans to restore tariff rates to the levels he first announced in April.
Bloomberg
2 days ago
- Business
- Bloomberg
US-China Trade Talks; LA Immigration Clashes Escalate
The US and China are ready to resume trade talks in London today... with the flow of rare earth minerals set to be a key focus; clashes between law enforcement and demonstrators in Los Angeles over anti-deportation protests escalate. President Trump's deployment of the National Guard inflames residents... California's Governor says he will file a law suit to block the federal government's intervention; and Bloomberg learns Meta is in talks to invest in startup Scale AI. The financing may exceed $10 billion, making it one of the largest-ever private company funding deals. (Source: Bloomberg)
Yahoo
2 days ago
- Business
- Yahoo
Morning Bid: Markets pin hopes on London trade talks
A look at the day ahead in European and global markets from Rocky Swift Optimism abounds in the markets that the United States and China will reach a rapprochement in London today, after a phone call last week between leaders of the world's two largest economies turned down the heat on their protracted rift over trade. Both sides have strong incentives to ratchet down the rhetoric and find agreement as their economies remain tightly linked, although U.S. President Donald Trump has shown interest in decoupling them. The market reacted favourably on Friday to U.S. jobs data that showed less of a slowdown than feared, temporarily easing concerns about the trade war's fallout. But that was counterbalanced today when China's dour producer price data added to evidence that the spat is taking its toll. Asian shares rebounded sharply on Monday, reacting to Friday's exuberance on Wall Street. Equity futures pointed to a slightly lower open in Europe, while U.S. stock futures, the S&P 500 e-minis, slid 0.2%. On the trade front, representatives from the U.S. and China, due to meet at a still undisclosed location in London, will attempt to revive a preliminary trade agreement reached in Geneva last month. Trump is threatening to impose triple-digit tariffs on Chinese goods, while Beijing's key leverage is its near stranglehold on rare earth minerals that are critical to many high-tech sectors. Perhaps persistence is the key. Japan's chief trade negotiator Ryosei Akazawa is planning a sixth round of talks in Washington this week, Kyodo News reported. The economic and earnings slate is practically empty today. The next major figures to watch out of the U.S. will be inflation data on Wednesday, followed later in the week by producer price figures, weekly jobless claims and the University of Michigan report on consumer sentiment. The Fed is in a blackout period ahead of its June 18 policy decision. The markets were also keeping an eye on events in Los Angeles, where National Guard troops are facing down protesters demonstrating over Trump's immigration policies. Videos showed part of a major freeway in the city blocked by activists. California on its own is the world's fourth-largest economy, exceeding Japan's gross domestic product, and Trump deployed guardsmen to its biggest city to counteract what the White House described as "chaos, violence and lawlessness". Governor Gavin Newsom called Trump's reaction "the acts of a dictator". Key developments that could influence markets on Monday: - U.S. wholesale inventory data for April. - Mexico reports inflation and producer price data for May. Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Rocky Swift; Editing by Edmund Klamann) Sign in to access your portfolio
CNN
2 days ago
- Business
- CNN
Trump economic adviser ‘very comfortable' with a trade deal closing with China on Monday
National Economic Council Director Kevin Hassett said Sunday that he is 'very comfortable' with a trade deal closing between the United States and China after the two sides meet Monday in London. Hassett's comments on CBS' 'Face the Nation' come after President Donald Trump said last week that he had a 'very good' conversation with Chinese leader Xi Jinping and that talks with China are 'very far advanced.' Hassett said the United States is looking to restore the flow of 'crucial' rare earth minerals, which are used in the manufacturing of electronics, to the same levels before early April, when the US-China trade war escalated. 'Those exports of critical minerals have been getting released at a rate that is higher than it was, but not as high as we believe we agreed to in Geneva,' Hassett said. Commerce Secretary Howard Lutnick will lead the negotiations in London, along with Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, who in May led a weekend of the trade talks in Geneva. But tensions between the nations escalated weeks later after Trump posted on Truth Social that China 'totally violated' its 90-day trade agreement, which had dialed back the tit-for-tat trade war. Under the agreement, the US temporarily lowered its overall tariffs on Chinese goods from 145% to 30%, while China cut its levies on American imports from 125% to 10%. Under the agreement, China said it would suspend or cancel its non-tariff countermeasures imposed on the United States since April 2. Part of Beijing's retaliatory measures included export restrictions on some rare earth minerals, which are essential parts used in products such as iPhones, electric vehicles and fighter jets. The Trump administration on April 2 imposed sweeping 'reciprocal' tariffs on dozens of trading partners before pausing them for 90 days and lowering them to a 10% baseline. Hassett on Sunday declined to say what baseline tariffs could be in place moving forward as the Trump administration continues negotiations with trading partners ahead of the July 9 deadline. 'You could be certain that there's going to be some tariffs,' Hassett said. Lutnick told CNN's 'State of the Union' in May that 'we will not go below 10%' and to expect that baseline rate for the foreseeable future. The Trump administration has so far announced only one trade deal, with the United Kingdom. The Trump administration has touted that other countries, particularly China, will bear the burden of tariffs. Businesses and economists have warned otherwise, spurring uncertainty about consumer spending and fears of a potential recession. Amid those concerns, US inflation slowed to its lowest rate in more than four years in April. The annual inflation rate fell from a 2.4% increase in March to 2.3% as consumer prices rose 0.2%, according to Consumer Price Index data. 'All of our policies together are reducing inflation and helping reduce the deficit by getting revenue from other countries,' Hassett said. The Treasury Department reported that a record $16.3 billion was collected in gross customs duties in April, a sharp jump from the $8.75 billion that was collected in March. Since the start of the 2025 fiscal year, which began in October 2024, the United States has collected about $63.3 billion in gross customs duties — a more than $15 billion increase from the same period during the last fiscal year. The Congressional Budget Office estimates that increased tariff revenue, without accounting for effects on the US economy, could reduce total deficits by $3 trillion over the next decade. The US government deficit stood at about $2 trillion in 2024, or roughly 7% of gross domestic product, according to a June 2024 report by the CBO. Meanwhile, House Republicans' sweeping bill to enact Trump's policy agenda would pile another $3.8 trillion to the government's $36 trillion debt pile, according to recent CBO estimates. CNN's Matt Egan and Alicia Wallace contributed to this report.
