Trade deals between the US and China are moving at a pace slower than expected, which may lead to extensions of the current tariff deadlines, according to a report by SBI Funds Management.The report highlighted deadlock amidst ongoing trade talks between both the nations with both sides showing limited progress in finalising a deal. The report points at a critical standby in global supply of rare earth metals which may get affected owing to China’s domination in supplying 90% of the global capacity, reported ANI.China’s dominance over rare earth metals could prove detrimental for global automobile industry, especially electric vehicle production in the US, Europe, and India.China on Tuesday responded to Trump administration’s renewed tariff plans with warning of potential retaliatory measures. Beijing also indicated that it may also take action against countries that align with Washington’s efforts to marginalize China within global supply chains. The warning was published as a part of an official commentary in People’s Daily. The article called the US tariff strategy, labeling it “bullying,” and argued that “dialogue and cooperation are the only correct path”, reported by Reuters.The 90-day pause for trade negotiations which was initially set to end on July 9, has been extended to August 1. Trump has escalated trade tensions by sending tariff letters to more than 20 countries, warning that higher import duties will take effect from August 1, 2025 if bilateral trade deals are not reached.
