Kumar Bahukhandi
Trump has made an important deal with China – Photo – Reuters
US President Donald Trump has announced a rare mineral deal with China. Trump has described it as a symbol of excellent relations between the two countries. A White House official said that after this deal, America will impose a total tax of 55% on goods coming from China. Whereas, China will impose only 10% tax on products coming from America.
US President Donald Trump has announced a rare minerals deal with China. Trump has described it as a symbol of excellent relations between the two countries. Under this deal, China will supply rare earth minerals and magnets to the US. In return, the US will allow Chinese students to study in its universities.
Trump wrote on his social media site Truth Social that we are getting 55% tariff from China, while China is getting only 10% tariff. He wrote that our relations are excellent. Trump also said that China will supply the necessary magnets and rare minerals, and the US will also fulfill conditions like education access for Chinese students.
How will America levy 55% tax?
According to news agency Reuters, a White House official said that after this deal, America will impose a total tax of 55% on goods coming from China. This will include 10% baseline tariff to maintain parity, 20% tariff against fentanyl smuggling and 25% will be part of the already implemented tariff. Whereas, China will impose only 10% tax on products coming from America.
Why is this deal important?
Minerals like rare earth minerals are essential for smartphones, batteries, defense equipment and high-tech industries. America has long been dependent on China for these minerals. On the other hand, giving Chinese students access to the American education system will strengthen the educational and cultural ties between the two countries. This deal can open a new chapter in US-China relations on the trade, education and geopolitical front.
