The United States and China agreed to slash tariffs on $30 billion worth of non-sensitive goods following President Xi Jinping's state visit to the U.S. last week, but the deal conspicuously sidesteps the rare earths dispute that's critical to American manufacturing jobs and the green energy transition.
The White House released lists on Sunday covering 77 categories of U.S. imports from China and 1,619 Chinese imports from the U.S. China's Ministry of Commerce said on Monday that more than 90 per cent of the products would receive most-favoured-nation tariff rates, with all reciprocal tariffs waived. The agreement includes linen, fireworks, and crockery. It doesn't include the rare earth minerals essential for electric vehicles, wind turbines, and defense systems.
What's Missing From the Deal
Progress on rare earths remained absent from official statements following the historic summit in Washington last Friday. That's a problem for American workers in manufacturing sectors that depend on these minerals. China controls roughly 70 per cent of global rare earth production and has previously used export restrictions as economic leverage.
The two countries did agree to establish an agricultural trade working group, which could provide some relief to farmers who've weathered years of trade uncertainty. But for union workers in advanced manufacturing, the silence on rare earths means continued vulnerability to supply chain disruptions.
Hong Kong's Role in Easing Tensions
Hong Kong's financial secretary Paul Chan Mo-po said in an interview ahead of the Apec Finance Ministers' Meeting in Hong Kong on October 20 and 21 that more communication and dialogue between the two nations would be "good for everyone." He's right that dialogue matters. It provides greater global certainty and eases geopolitical concerns.
Chan said visiting political leaders would see Hong Kong and its vibrancy with their own eyes. The Apec Finance Ministers' Meeting will bring together hundreds of global leaders in the city, taking place ahead of this year's Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19.
Competition Remains
Chan acknowledged that while dialogue will ease concerns, competition between the two economic superpowers will remain. That's the reality American workers face: incremental progress on consumer goods while strategic industries hang in the balance. The tariff reductions on basic goods won't address the fundamental power imbalance in critical mineral supply chains.
The agreement represents a step toward stability, but it's a modest one. Workers in green energy and advanced manufacturing sectors needed a breakthrough on rare earths. They didn't get it.
Why This Matters:
The selective nature of this tariff agreement reveals who benefits from trade normalization and who's left waiting. Consumers will see marginally lower prices on linens and crockery, but workers in strategic industries remain exposed to supply chain vulnerabilities that threaten both their jobs and America's industrial capacity. The absence of progress on rare earths means the U.S. continues to depend on Chinese goodwill for materials essential to the clean energy transition and national security. Without addressing these structural dependencies, trade agreements risk favoring corporate importers while leaving manufacturing workers and communities vulnerable to future disruptions. The dialogue that Hong Kong's financial secretary champions matters, but it needs to deliver concrete protections for workers whose livelihoods depend on secure, diversified supply chains in strategic sectors.