Trump Seeks Tariff Cuts, Rare Earths Relief in Geneva Talks as China Tightens Mineral Controls

The Trump administration is considering a substantial reduction in tariffs on Chinese goods during upcoming talks in Geneva, aiming to ease trade tensions and mitigate economic impacts. The U.S. delegation, led by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, has set a target of reducing tariffs below 60%, with the possibility of reciprocal moves from China. Current U.S. tariffs on many Chinese imports stand at 145%. A key objective for the U.S. is to secure relief from China's export restrictions on rare earth minerals, including neodymium and praseodymium, which are critical for industries such as automotive, electronics, and defense. The talks are also expected to address the removal of export controls on these minerals, as well as progress on issues such as the export of fentanyl precursors. In response, China has launched a comprehensive campaign to crack down on the smuggling of strategic minerals, including rare earth elements, gallium, germanium, antimony, and tungsten. The Chinese Ministry of Commerce, along with other ministries, is tightening export controls and increasing enforcement against illegal outflows, including transshipment through third-party countries. The crackdown was announced one day before the trade talks. Amid these developments, MP Materials, operator of the Mountain Pass mine in California, is ramping up domestic production and refining of rare earth metals and magnets, including at a new plant in Texas. MP Materials has halted shipments to China, which previously accounted for $144.4 million in sales, and is increasing sales to the U.S., Japan, and South Korea. China processes 90% of global rare earths.