Mint Quick Edit | Will the China-US truce spell rare-earth relief?
The two trade warriors have signalled peace again after talks in London, where both agreed to honour their recent Geneva deal. Is this good news for EV makers starved of rare earths?
After two days of hectic talks in London between trade representatives of the US and China, another trade truce has been declared struck, with the two countries agreeing to fully implement the last one forged in Geneva. Under it, they had agreed to a suspension of new tariffs.
Also Read: China risks overplaying its hand by curbing rare earth exports
The US had apparently expected Beijing to ease its export curbs on rare earth minerals, a severe shortage of which has lately sent key industries—from defence to electronics and electric vehicles (EVs)—into a tizzy across the world. Instead of ending export barriers, Beijing may have taken its part of the bargain to mean faster shipment clearances.
Also Read: Barry Eichengreen: US export curbs on high-tech enablers have rarely worked
The London outcome seems to offer America Inc relief, as US commerce secretary Howard Lutnick has said the US expects the squeeze to be resolved now. The framework deal only awaits the leaders of both countries to sign off on it. It’s unclear, however, whether this can be greeted as good news by non-US importers of those rare earths.
Also Read: Recycling should lead India’s quest for critical minerals like lithium
EV-makers in India have also faced a rare-earth crunch that threatens to hold EV production back. Beijing has been dragging its feet on okaying supplies to Indian importers. Maybe India needs to hold talks with China too.
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