Trump, Xi Ease Tariffs, Rare Earths Deal – Asia Pacific
News Context
At a glance
- This meeting represents a notable, though likely temporary, cooling of tensions.
- Note: Data on rare earth production is subject to change and can vary depending on the source.
Key Agreements & Commitments
- Tariffs: Trump will reduce a 20% tariff on Chinese goods by 10% due to commitments on fentanyl.
- Agricultural Purchases: China committed to immediately purchasing “tremendous amounts” of US soybeans and other farm products.
- Rare Earths: China agreed to suspend export restrictions on rare earth materials for one year.
- Fentanyl: Xi Jinping pledged to work to stop the flow of fentanyl into the US.
- Energy: discussions will begin regarding a potential deal for China to purchase American energy, potentially from Alaska.
Trade War Context – Rare Earths
| Material | Primary Use | China’s Dominance |
|---|---|---|
| Neodymium | Magnets (electric vehicles, wind turbines) | ~70% of global production |
| Dysprosium | Magnets (high-temperature applications) | ~90% of global production |
| Lanthanum | Camera lenses, hydrogen storage | ~80% of global production |
Note: Data on rare earth production is subject to change and can vary depending on the source.