January 1, Trump Pushes Tough on China, Trade Talks Loom

Wyatt’s Take

• China and America are still at odds over trade.
• President Trump is meeting Xi to hammer out a deal before more tariffs hit.
• China is flexing its muscle with rare earth export controls, making talks tense.

President Trump is heading to Asia this week to meet China's Xi Jinping with a deadline for higher tariffs right around the corner. This is their first face-to-face since before the pandemic, and both sides are under pressure as the clock ticks on their trade truce.

"I think we are going to come out very well and everyone's going to be very happy," Trump said Thursday, striking an upbeat tone.

Talks are up against tough obstacles. China has put restrictions on rare earth metals that America relies on for industry, while the White House added steep port fees on Chinese ships and banned some tech imports. President Trump hopes to lock in a new deal before time runs out in early November, but the Chinese aren't budging easily.

Both countries have fired back with their own tariffs and restrictions, raising costs for American workers and farmers. Washington is also facing a government shutdown that has left many federal workers and the military unpaid.

China recently tightened its grip on rare earths, a move aimed at gaining leverage in talks.

"This is a very big deal. China has asserted sweeping control over the entire global semiconductor supply chain, putting export license requirements on all rare earths used to manufacture advanced chips," said Dean Ball, a senior fellow at the Foundation for American Innovation.

China holds a strong hand, controlling most of the world's rare earth production. Trump, meanwhile, has threatened a 100% tariff if China won't make a deal and even hinted at more tech bans.

The pressure is on for both sides to agree, but tensions are high and the outcome is far from certain.

If these talks break down, working Americans could see prices climb even higher and jobs head overseas.

Wyatt Matters

Middle America feels every pinch of these trade battles at the grocery store and the factory floor. Folks across the heartland know that when global deals falter, it's small towns and working families who get squeezed first.

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