＂Trump WON China's Chess Game＂ - Bessent & Lutnick ANNOUNCE Major Trade Deal With China
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Summary
Trump locks in China trade deal, keeping pressure on Beijing. And this is a big story. The Trump administration finalized a trade deal with China, securing commitments from Beijing to export rare earth minerals, vital to U.S. manufacturing.
Transcript
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Trump locks in China trade deal, keeping pressure on Beijing, and this is a big story.
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The Trump administration finalized a trade deal with China, securing commitments from Beijing to export rare earth minerals,
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vital to U.S. manufacturing, as Commerce Secretary Howard Lutton told Bloomberg, he has this video here, Rob, if you want to play this clip, go for it.
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Mr. Secretary, you just said that you're going to announce a whole bunch of deals over the course of the next week.
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With what countries? And does that include the China deal the president suggested was signed yesterday? What is that?
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So the China deal, we inked the deal. You remember we had a trip to Geneva, and then that was being slow played.
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We got back together in London, and that deal was signed and sealed two days ago.
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The president just said it just the other, just, you know, I don't know, 15 minutes ago.
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And then he also suggested that we are, of course, at the very close finish line with India.
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Of course, the way these deals happen is their prime minister and their parliament have to approve it, and the president likes to close these deals himself.
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I mean, he's the dealmaker. He loves to close it. I think we have deal after deal after deal.
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The president's going to make his calls. He's going to decide exactly the finishing touches on them.
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And then what we're going to do is we're going to lay out a structure of all the different kinds of tariff arrangements with different countries, right?
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There are countries with huge deficits. There are countries that are balanced.
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Rob, can we go hear what Scott Besson had to say about this?
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Because this is obviously a very big news that a lot of people are looking for with the China trade war.
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I know the rare earth minerals was a huge improvement after your conversations.
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Can you tell us about this agreement with China? What exactly does it entail?
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Sure. And look, Maria, this is what leadership looks like under President Trump.
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We've got peace deals. We've got trade deals. We've got tax deals.
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And in dealing with the world's second largest economy, we approached each other with mutual respect.
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President Trump set the table with a very important call with party chair Xi.
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We had trade talks in Geneva toward moving toward the agreement in London.
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Part of the agreement was tariffs coming down and rare earth magnets starting to flow back to the U.S.
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They formed the core of a lot of our industrial base.
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They were not flowing as fast as previously agreed.
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President Trump and President Xi had a phone call.
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And then our teams met in London, ironed this out.
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And I am confident now that we, as agreed, the magnets will flow.
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In the meantime, we had put countermeasures versus the Chinese.
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Tom, how close are we? How important is this? How big could this be?
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But remember, what he said was this is a trade deal.
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And what's very, very important here, he mentioned rare earth minerals and magnets more than once.
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Why? It's the same thing we were negotiating in Greenland.
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It's a simple amount. Greenland, we just have a deal with them.
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Now we got to build a mill and dig down in there and you do all that.
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And Ukraine, part of the areas where they have the rare earth stuff is there's bombs flowing back and forth.
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But the rare earth deal in Ukraine was important.
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But here, China has the rare earth minerals coming out of the ground, being turned into magnets, and he wanted to get those flowing back.
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We put the tariffs in place and then they slowed down shipping the rare earth.
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We were trying to get backup plans with Ukraine and Greenland for rare earth.
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But remember, that was, Pat, you know, first you got to build all the infrastructure.
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You need to get it out of the ground and make it usable.
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We went back to them and it was a product called ethane.
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Ethane is a root chemical that becomes plastic.
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So, the need for plastic and chip software by China.
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Well, your magnet and rare earths are going to slow down.
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Mr. President, we can't get the rare earth stuff.
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Shut down ethane and shut down and put restrictions on chip software.
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Now, China, making all kinds of things out of plastic, goes, crap.
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And they met in Geneva and they got it together.
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The asterisk at the end of the sentence, if you dive down into this, if the rare earth
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magnets start flowing at the quantities they promised, only then will we declare that China
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has fulfilled its promises and the ethane will flow the other way.
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So we are not, what we are doing is we are doing Ronald Reagan trust but verify.
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Sometimes trade deals aren't worth the paper they're written on.
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We will let the ethane go and we will reduce the chip software in line as soon as they start
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So I think this is a very good starting point and we have reason to be happy.
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The stock market likes it too because with these magnets flowing back to American manufacturers,
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now they can keep the prices down of the products that they're making.
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So I think this was a really cool chess game and later we will be looking at it back and
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forth, I think, as a case study of how to do it.
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If this continues, the tariffs, the when it comes, I keep saying this.
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If they get this deal in, 2026, the enemy is going to try to do everything in their
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power to make Trump look bad, divide internally, everything in their power to do so.
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But 2026 could be the greatest years for many of you, of your lives, of your lives.
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If you do it right, I think 2026 is going to be an IPO year.
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I think 2026 is going to be an aggressively successful year for a lot of people that play
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Tom, Adam, your thoughts before we go to the next story.
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So we were just talking about the New York City potential mayor, Zorn Mandani.
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And if you want to understand him, go read the book, The Communist Manifesto by Karl
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You'll get a good, deep understanding to that guy's mindset.
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Now, if you're a world leader or somebody, even domestic, that wants to understand the
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mindset of Donald Trump, well, go read one book.
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And in The Art of the Deal, he basically breaks it down into five key points.
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He says, think big, maximize leverage, know your market, use the press, which Trump does
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And then number five, protect your downside and have unlimited upside.
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Everything that Scott Besson just said, by the way, I think he's got a very cool, calm,
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collective demeanor, which is almost like the opposite of like how Howard Lutnick is.
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I think that's a good one-two punch negotiating these deals.
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But everything he talks about is in the framework of a deal.
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All right, whether it's peace deals, whether it's trade deals, whether it's tax deals.
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Now they're talking about real earth mineral deals, hostage deals.
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And when you're a dealmaker, anything's on the table.
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And he still works his tail off every single day.
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You know, Pat, you always talk about the love of the game.
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Trump is doing it because he loves making deals.
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So in my opinion, Trump, he's working on the biggest deals he's ever worked on in his life.
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