President Trump started trade fights with most countries during April. America and China agreed to stop their tariff war for three months after Geneva talks on May 10 and 11. Stock markets went crazy during those weeks because investors feared economic problems. China cut taxes on American goods from 125 percent down to 10 percent. America reduced Chinese import taxes from 145 percent to 30 percent.
Trade peace between the superpowers fell apart over recent days. America stopped companies from selling computer chip software to Chinese businesses. The government plans to cancel visas for Chinese students who have Communist Party connections. Officials also blocked engine parts sales to China's aircraft company COMAC. Trump posted angry messages saying China broke their promises completely.
China refuses to ship rare earth metals that American factories need desperately. Auto plants across America might shut down production lines without these materials. Electric car motors require special magnets made from rare earth elements. America has plenty of rare earth deposits but cannot process them quickly. Building new mining and refining operations would take ten years to complete.
Trade peace between the superpowers fell apart over recent days. America stopped companies from selling computer chip software to Chinese businesses. The government plans to cancel visas for Chinese students who have Communist Party connections. Officials also blocked engine parts sales to China's aircraft company COMAC. Trump posted angry messages saying China broke their promises completely.
China refuses to ship rare earth metals that American factories need desperately. Auto plants across America might shut down production lines without these materials. Electric car motors require special magnets made from rare earth elements. America has plenty of rare earth deposits but cannot process them quickly. Building new mining and refining operations would take ten years to complete.
