The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods from 145 per cent to 30 per cent, and Chinese countermeasures from 125 per cent to 10 per cent.
But Trump recently said China “totally violated” the deal. A key issue was Beijing’s shipments of rare earths, crucial to goods including electric vehicle batteries.
“Rare earth shipments from China to the US have slowed since President Trump’s ‘Liberation Day’ tariffs in April,” said Kathleen Brooks, research director at trading group XTB.
Brooks was referring to when Trump slapped sweeping levies of 10 per cent on friend and foe alike, and threatened steeper rates on dozens of economies.
“The US wants these shipments to be reinstated, while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology, including microchips, and to make it easier for Chinese tech providers to access US consumers,” Brooks added.
Hassett’s statement signalled the Trump administration might be willing to ease some recent curbs on tech exports.
