White House spokeswoman Karoline Leavitt said US President Donald Trump and Chinese President Xi Jinping will hold talks this week. The main agenda will be tariffs and export restrictions.
“I can assure you that the administration is actively monitoring China’s compliance with the Geneva trade agreement,” Leavitt said, adding that US officials continue negotiating with their Chinese counterparts.
Reuters writes that auto companies are currently under great pressure. The world’s largest automakers, including German manufacturers, have joined their American counterparts in complaining about China’s export restrictions on rare earth minerals, alloys, and magnets.
Reuters reports that manufacturers warn that if the situation is not corrected, it could lead to disruptions in production processes and severe economic consequences. One of the largest Indian electric car manufacturers has also filed a complaint.
According to the source, China decided in April to suspend exports of some key minerals and magnets, which has disrupted supply chains vital to the auto industry, aerospace companies, semiconductor manufacturers, and military contractors. The move is seen as an economic lever to pressure the United States, especially its tariff policy.
The Trump administration had previously imposed tariffs of up to 145% on billions of dollars of Chinese goods to reduce the trade deficit and boost domestic production. However, the administration was forced to ease its tariff policy after a sharp reaction in financial markets, including stocks, bonds, and currencies.
In response, Beijing has imposed its tariffs and continues to use its dominance in critical supply chains to influence the Trump administration.
