• Preparations for the upcoming Trump-Xi summit are proceeding despite escalating trade tensions over rare earth minerals and tariffs.
  • The U.S. is advancing an $8.5 billion deal with Australia to secure critical mineral supplies, aiming to reduce reliance on China.
  • Cleveland-Cliffs and other U.S. industrial firms are supporting efforts to reshore supply chains for strategic materials.

U.S. Trade Representative Jamieson Greer reaffirmed that an upcoming meeting between President Donald Trump and Chinese President Xi Jinping remains on schedule, even as both nations exchange threats over tariffs and strategic control of critical supply chains. The confirmation comes amid heightened tensions following China's expansion of export controls on rare earth minerals—key inputs for electronics, defense, and green technology.

"Preparations for the summit are moving forward," Greer stated in an interview, according to people familiar with the matter, signaling that diplomatic channels remain open despite the heated trade rhetoric. The leaders are anticipated to meet during the Asia Pacific Economic Cooperation (APEC) forum, an event now viewed as critical for potential de-escalation.

Behind the scenes, the economic confrontation is intensifying. The Trump administration has pushed total tariffs on certain categories of Chinese goods to over 55%, while simultaneously pursuing aggressive measures to reshore manufacturing and secure alternative mineral supplies. A recently signed $8.5 billion deal with Australia aims to build out critical mineral supply chains independent of China, part of a broader initiative that also restricts sales of strategic minerals to adversaries.

U.S. industry appears to be aligning with this strategic pivot. Cleveland-Cliffs, a major domestic steelmaker, has announced plans to extract rare earths from its own mining sites, a move that signals broad corporate support for reducing dependence on Chinese materials. The effort reflects a growing consensus within policy circles that controlling these supply chains is a matter of national and economic security.

Without a successful diplomatic intervention at the upcoming summit, analysts warn the trade dispute could escalate sharply, leading to further supply chain disruptions and potential consumer price increases. The situation has prompted heightened concern among U.S. allies and industry groups about long-term supply stability.

Efforts to reach a spokesperson for further comment on the summit's agenda were unsuccessful. The White House has yet to release an official statement confirming the specific timing of the meeting.

Correction: An earlier version of this article misstated the total tariff percentage on some Chinese goods. The figure is over 55%, not 65%.