According to the deal, 55% of the tariff structure will apply to Chinese imports, while China will impose 10% tariff on US goods.
The deal, which ended after two -day negotiations in London, includes the necessary magnets and rare earths used in EV motors, batteries, sensors and high performance breaking systems. Supplying is a commitment from China. In turn, the US Academic visa access to Chinese students will facilitate cess.
“President Xi and I am going to work together to open China for American trade. This would be a big win for both countries,” Donald Trump said.
Overall, trade contract signals de-ascelation in trade tensions between the world’s two largest economies, and is seen as a positive trigger in the field of capital goods, Auto toe and electronics globally.
Rare earth is used in electronics, defense equipment and electric vehicles. Trump’s tariff decisions have already created chaos in global trade. Companies lost billions due to tariffs and confusion at the ports.
Under a new agreement, China has been in the U.S. Aim to re -restore the restore cess of the materials required for automotive, electronics and defense fields, promises to provide rare earth elements and “full magnets” forward.
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While the deal directly affects the US-China trade, India has reduced input instability, better reach of raw materials and improve the global market. For Indian Auto Tomakers, it is a geographical political televind for both EV growth and export competitiveness.
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