The arrangement shows how Trump is squeezing both ends of international trade when it comes to technology, using the threat of sky-high tariffs to get concessions from China on rare earth minerals and forcing companies to pay extra taxes in exchange for the right to sell goods to China.

A sustained trade conflict between the U.S. and China will impact industrial supply chains, demand for oil and the war in Ukraine.

The U.S. dollar edged higher across the board on Monday, a day before the deadline for Washington and Beijing to strike a tariff deal and the release of a U.S. inflation report that could help determine whether the Federal Reserve lowers borrowing costs next month.