Trump’s Trade Gambit: Rare Earths, Tariffs, and Taiwan in U.S.-China Deal-Making

Trump’s Optimism Amid Rare Earths Tensions

President Donald Trump has projected confidence in striking a “fantastic deal” with China, emphasizing the United States commands “great respect” from Beijing. This assertion follows China’s expansion of export controls on rare earth minerals—critical components in technologies ranging from smartphones to fighter jets. Trump’s comments, made during Australian Prime Minister Anthony Albanese’s White House visit, highlight a strategic push to counter China’s dominance in processing these essential materials. The U.S.-Australia partnership aims to diversify supply chains, reducing reliance on Chinese exports., according to industry experts

Trump’s Optimism Amid Rare Earths Tensions
Tariff Threats and Negotiating Leverage
The Xi-Trump Dynamic and APEC Summit Prospects
Taiwan’s Role in U.S.-China Relations
Shifts in China’s Trade Negotiating Team
Broader Implications for Global Trade

Tariff Threats and Negotiating Leverage

Trump has not shied away from using tariffs as a bargaining chip. He confirmed threatening China with a potential 100% tariff if no agreement is reached by November 1, responding to Beijing’s rare earth restrictions. “They threatened us with rare earths, and I threatened them with tariffs,” Trump stated, underscoring the high-stakes brinkmanship. Despite existing tariffs averaging 55–57% on Chinese goods, which he claims have generated “hundreds of billions” for the U.S., Trump acknowledged such measures are “not sustainable” long-term. China’s foreign ministry has criticized this approach, warning that threats are counterproductive to resolving trade disputes., according to market insights

The Xi-Trump Dynamic and APEC Summit Prospects

Central to the deal-making hopes is Trump’s relationship with Chinese President Xi Jinping. Trump described their rapport as a foundation for a “very fair deal,” with a potential meeting on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit this month. While Beijing has yet to confirm Xi’s attendance, such high-level engagements are often announced closer to the event. A failure to secure a deal could destabilize not only bilateral relations but also global economic stability, given the two nations’ intertwined economies., according to related coverage

Taiwan’s Role in U.S.-China Relations

Trump downplayed concerns about a Chinese military move on Taiwan, citing U.S. military superiority. “It’s not even close,” he remarked, emphasizing that Taiwan is “the apple of his eye” for Xi but asserting that trade relations mitigate risks. When asked if he would concede on Taiwan’s independence to secure a deal, Trump declined to comment, leaving the issue unresolved. The U.S. is legally bound to support Taiwan, a point of contention with Beijing, which views the island as part of its territory and vows reunification., as covered previously, according to market trends

Shifts in China’s Trade Negotiating Team

In a notable development, China removed Li Chenggang as its top trade negotiator and permanent representative to the World Trade Organization, replacing him with Li Yongjie. The change followed rare public criticism from U.S. Treasury Secretary Scott Bessent, who accused Li Chenggang of using “incendiary language” and acting “rogue.” This reshuffle coincides with ongoing talks, including a recent video call between Chinese Vice Premier He Lifeng and U.S. officials, where both sides agreed to expedite new trade discussions. The personnel shift may signal Beijing’s effort to recalibrate its strategy ahead of critical negotiations.

Broader Implications for Global Trade

The outcome of U.S.-China talks will reverberate worldwide. Rare earths are vital for green energy and defense sectors, and tariffs could inflate costs across supply chains. Trump’s emphasis on alliances, like the one with Australia, reflects a broader trend of nations seeking alternatives to Chinese dominance. As deadlines loom, the focus remains on whether mutual interests can override tensions, paving the way for a deal that balances economic growth with geopolitical stability.

For further insights into rare earths and trade dynamics, explore AP News’ coverage of China’s export controls and analysis of Trump-Xi relations.

References & Further Reading

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A federal judge has temporarily blocked the Trump administration’s controversial plan to fire federal employees during the government shutdown. The ruling comes amid allegations that officials exploited the funding lapse to implement mass layoffs.

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