US President Donald Trump has announced a rare mineral deal with China. Trump has described it as a symbol of the best relationship between the two countries. Under this deal, China will supply rare economies (rare minerals) and magnets (magnetic materials) to the US. In return, America will allow Chinese students to study in their colleges and universities.
Trump wrote on his social media site Truth Social that we are getting 55% tariff from China, while China is getting only 10% tariffs. He wrote that our relationships are excellent. Trump also said that China will supply essential magnets and rare minerals, and America will also fulfill the conditions like education access for Chinese students.
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How will the US take 55 percent tax?
According to news agency Reuters, a White House official said that after this deal the US will impose a total tax on goods coming from China. In this, 10% baseline tariffs- to maintain equality, 20% tariff will be against phentail smuggling and 25% will be part of the already applicable tariff. Whereas, China will impose only 10% tax on products coming from America.
Why is this deal important?
Rare Earth Minerals such as mineral smartphones, batteries, defense equipment and high -tech industries are essential. The US has long been dependent on China for these minerals. On the other hand, giving Chinese students access to the American education system, will strengthen the educational and cultural relations of both countries. This deal can open a new chapter in the US-China relations on business, education and Jio Political Front.