The US Treasury Secretary, Janet Benson, stated on Sunday (November 16th) that the United States and China are “likely” to finalize a trade agreement before Thanksgiving.
Last month, the US and China reached a framework agreement where China agreed to delay the implementation of rare earth export controls for a year and promised to purchase a large amount of US soybeans. In return, the US agreed not to impose 100% new tariffs on Chinese goods and postponed the implementation of measures that would put thousands of Chinese companies on the Commerce Department’s export control blacklist.
According to a recent report by The Wall Street Journal, insider sources revealed that the Chinese Communist Party plans to simplify the export process of rare earth and other restricted materials to the US by establishing a system. This system will exclude companies associated with the US military while expediting export approvals to other companies. In other words, this system called “End-User Verification” (VEU) will ensure that these critical materials do not fall into the hands of US military suppliers.
This disclosure has garnered particular attention because rare earth is a crucial material for manufacturing electronic products, laser-guided weapons, and advanced military equipment such as fighter jets.
Secretary Benson questioned the accuracy of The Wall Street Journal’s report during an interview on the Fox News program “Sunday Morning Futures.” He said, “We haven’t even completed the agreement yet; we hope to finish it before Thanksgiving.”
He expressed his belief that China would fulfill its commitments following the meeting between US and Chinese leaders at the end of October. If they fail to do so, the US has many retaliatory measures. However, making such comments before the agreement is signed, “I consider it irresponsible.”
Benson also expressed optimism about the US economy in the coming year.
“We will see significant growth in the US economy in the first and second quarters of (next year),” he said. “I expect that in the first two quarters of next year, the inflation curve will decline, and the real income curve will rise significantly.”
“Thanks to President Trump’s iconic plan, 2026 will be a great year for the American working class and the market. I call it ‘parallel prosperity’ – both the real economy and Wall Street can thrive. But I believe that the real economy will have a fantastic year in 2026.” He concluded.