Trump's Trade Demands with China: Rare Earth Elements and Fentanyl

Trade Conflict Between the US and China

US President Donald Trump stated that the main reasons for the ongoing trade tension between the US and China are rare earth elements, fentanyl, and soybeans.

Trump's Critical Demands

Speaking while returning from Florida to Washington on Sunday, Trump said, "We don't want the Chinese Government to play games over rare earth elements." Following China's move to control minerals on a global scale, Trump specified that a 100% tariff would be imposed. He also demanded that China stop the use of the lethal opioid fentanyl, addressing criticisms that China has not been able to curb the export of the drug and precursor chemicals, which contribute to the opioid crisis in the US.

Tension Over Rare Elements

Furthermore, Trump emphasized that he expects China to resume purchases of soybeans. He stated that these three demands are extremely normal. US Treasury Secretary Scott Bessent announced that these issues would be discussed in meetings in Japan.

China's Response and Trade Negotiations

Last week, Trump expressed anger over the Chinese government's announcement of implementing strict control over rare earth elements and hinted that he might cancel the first face-to-face meeting. He also stated that the additional tariffs would take effect on November 1. China announced that it would increase control measures and restrict the export of some critical materials.

Developments on Soybeans and Fentanyl

China imported $12.6 billion worth of soybeans in 2021, but made no purchases this year. Instead, it has turned to the South American market. Trump had decided to impose a 20% tariff on Chinese products citing the fentanyl issue. China continues to stress that the solution to the drug crisis is the responsibility of the US.

Conclusion

China stated that the trade war would not be in the interest of either side and that negotiations should be conducted on an equal basis. The impact of these developments on global trade dynamics is eagerly awaited.