Trade Tensions Escalate: U.S. Accuses China of Breaching Rare Earth Agreement
U.S. President Trump claims China has violated a trade agreement to mutually reduce tariffs on critical minerals, issuing a new threat to intensify measures against Beijing. The deal aimed to ease tensions but was allegedly compromised by China's slow compliance, threatening a truce between the two economic giants.
In a surprising turn of events, U.S. President Donald Trump has accused China of breaching an agreement to rollback tariffs on critical minerals, signaling potential escalation in trade tensions. Trump's remarks on his Truth Social platform suggested that China failed to honor a previously negotiated deal.
The agreement in question, forged in mid-May, aimed to suspend high tariffs for 90 days and avert further economic fallout. However, according to U.S. officials, China has been slow to issue export licenses for rare earth minerals, a crucial component for various industries including technology and defense.
As negotiations stall, the involvement of both Trump and China's President Xi Jinping may become necessary to resolve these disputes. Despite initial optimism, critical details of the tariff agreement remain unaddressed, perpetuating longstanding grievances about China's economic practices.
(With inputs from agencies.)
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