Trade Tensions: U.S. and China Reach Deal Amid Forced Labor Concerns
President Trump announced a new trade deal with China, increasing tariffs to 55% but securing rare earth minerals. Concerns about forced labor in Chinese supply chains spotlight the Xinjiang region's role in critical mineral production. Global brands may face scrutiny over their ties to these supply chains.
- Country:
- United States
In a development set to reshape international trade dynamics, President Donald Trump declared on Wednesday that the United States will source magnets and rare earth minerals from China as part of a new trade agreement. The deal entails a significant rise in tariffs on Chinese goods to 55%.
Amidst the agreement, Trump assured that concessions will allow Chinese students to pursue education in American institutions. However, underlying trade negotiations spotlight a burgeoning sectoral crisis involving forced labor allegations within Chinese supply chains, particularly in the Xinjiang region.
Global Rights Compliance, a Netherlands-based international rights group, released a report implicating major global companies, such as Walmart, Avon, and Coca-Cola, which might inadvertently benefit from forced labor practices. These allegations center around Chinese government-run programs affecting Uyghurs and Turkic minorities, further complicating U.S.-China trade relations.
(With inputs from agencies.)
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