Trump-Xi talks fail: No deal on rare earth metals, US warns of higher tariffs

Washington (The Uttam Hindu): The ongoing tension between the US and China over rare earths may have calmed down for a while, but its end seems far from over. The US is exploring new options in this matter. Meanwhile, US Treasury Secretary Scott Bessant has made a major statement regarding increasing tariffs on China.

Trump and Xi Jinping fail to reach an agreement on rare earth minerals; US warns China, saying they will increase tariffs : Scott Bessant said in an interview that the US administration is ready to increase tariffs on China if China continues to ban the export of rare earths. It is clear from his statement that an agreement on tariffs between the US and China has not been fully reached yet. It is worth noting that China had announced on Thursday that it will suspend the restrictions imposed on rare earth materials and technology in October for one year. However, Bessant expressed concern that Beijing has failed to fulfill its promises several times.

Speaking to media, the US Treasury Secretary said that China has virtually cornered the market for rare earth metals and unfortunately, has often proven to be a less than reliable partner. He explained that these metals are mined in many countries including the US, but China has a near-monopoly on processing them on an industrial scale.

This decision follows recent talks between Trump and Chinese President Xi Jinping in South Korea. Reacting to the agreement, Bessant said he hopes China will prove to be a more reliable partner going forward.

The Treasury Secretary warned that if China does not honor its promises, the US will consider raising tariffs. He said Washington is prepared to use all options available to it. He also clarified that the US does not want to decouple from China, but rather wants to take steps to mitigate risks.