GREENSBURG, Pa. - High-level trade negotiations between the United States and China underway Sunday in New York are focused on tariffs and critical materials, two issues that have a documented connection to at least one major industrial company with deep roots in Westmoreland County.

Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng are meeting ahead of Chinese President Xi Jinping's visit to Washington later this week. Reuters reported that tariffs, critical minerals and artificial intelligence are among the subjects under discussion.

For Westmoreland County, the connection is more than theoretical.

Kennametal, the global industrial technology company founded in the Latrobe area, operates a major technology center at 1600 Technology Way in Latrobe. The company told federal regulators this year that much of its research and development work is conducted at that facility.

Kennametal also disclosed that its business is exposed to exactly the kinds of trade and critical-material issues U.S. and Chinese officials are discussing.

Kennametal identifies China-linked tungsten risk

Kennametal produces metal-cutting tools, tungsten carbide products, engineered components and advanced materials used across manufacturing, transportation, energy, aerospace, defense and other industries.

Tungsten is particularly important to the company. Kennametal was founded following a tungsten carbide technology breakthrough in 1938, and tungsten remains a major raw material in its products.

In its annual report filed with the U.S. Securities and Exchange Commission in August, Kennametal said a significant portion of its raw materials comes from sources outside the United States.

The company specifically identified tungsten as a supply risk because global mining and processing capacity is concentrated in China.

Kennametal said recent export controls and other market conditions have increased uncertainty surrounding the availability and cost of tungsten products internationally and contributed to higher tungsten prices.

That creates a direct Westmoreland County connection to one of the issues being discussed in New York.

The Latrobe technology center is one of several locations where Kennametal develops products and manufacturing processes. The company's SEC filing says the majority of its research and development efforts are conducted at the Latrobe center along with facilities in Arkansas, Germany and India.

Changes in China's export policies or in broader U.S.-China trade rules therefore matter to a company with substantial research and industrial operations based in Westmoreland County.

Tariffs are already showing up in company results

Tariffs are not merely a hypothetical risk for Kennametal.

The company's 2026 annual filing said tariffs and general inflation were among the factors affecting its operating results during the fiscal year.

Kennametal also warned that changes in tariffs and trade barriers can affect the cost and availability of raw materials, particularly tungsten, and could increase manufacturing costs that the company may not be able to fully pass along to customers.

Foreign governments can also respond to U.S. tariffs with their own tariffs or export restrictions. Kennametal specifically identified restrictions on critical minerals as one of those potential risks.

The company's exposure extends beyond the United States. Kennametal reported that 57% of its consolidated sales during fiscal 2026 came from markets outside the United States, with China among its principal international operations.

That combination of global sales, Chinese operations and reliance on internationally sourced materials gives the company exposure to changes on both sides of the U.S.-China trade relationship.

What negotiators are discussing

Reuters reported Sunday that Bessent and He are discussing possible tariff reductions on non-strategic goods and U.S. concerns about the flow of rare-earth and other critical materials from China.

The two governments are attempting to maintain a trade truce that is scheduled to expire in November while resolving disputes over tariffs, Chinese purchases of American goods and access to materials used by U.S. industries.

Critical minerals have become a major point of friction because China holds dominant positions in the mining, processing or refining of several materials important to manufacturing and advanced technology.

Tungsten is not a rare-earth element, but it is considered a strategically important material and Kennametal's filing demonstrates how dependence on concentrated Chinese supply can reach directly into the operations of a company based in southwestern Pennsylvania.

The outcome of the negotiations could take several forms. The two governments could extend existing trade arrangements, modify tariffs on selected products or reach new commitments involving the movement of critical materials.

As of Sunday afternoon, no final agreement had been announced that would establish specific tariff changes or guarantee additional material supplies to American companies.

Manufacturing remains important in Westmoreland County

The Kennametal example matters because manufacturing remains one of Westmoreland County's major industries.

Westmoreland County's 2025-2029 Consolidated Plan identifies approximately 15,482 manufacturing jobs in the county, representing about 13% of employment in the dataset used by the county.

That includes businesses involved in advanced manufacturing, industrial equipment, metals, electrical systems, machining and other sectors that can depend on national and international supply chains.

Not every manufacturer in Westmoreland County has the same exposure to China. Some companies source primarily in the United States, while others depend on imported components, materials or equipment.

The effect of any trade agreement would therefore vary from company to company and would depend on the specific products, tariffs and export restrictions covered.

Kennametal provides an unusually clear example because the company itself has publicly disclosed the relationship between tariffs, Chinese-concentrated tungsten supplies and its operating costs.

Local effects depend on what happens next

President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Washington later this week after the economic teams complete the current round of negotiations.

The discussions in New York are intended in part to narrow disagreements and identify areas where the two leaders could reach understandings.

For Westmoreland County manufacturers, the details will matter more than the broad announcement of a trade agreement.

A reduction in tariffs on imported industrial products could lower costs for some companies while increasing competition for others. Improved access to Chinese-sourced critical materials could relieve some supply pressure, while continued export restrictions could keep costs elevated.

No evidence currently shows that Sunday's negotiations have changed prices or operations at Kennametal's Latrobe technology center or at other Westmoreland County manufacturers.

What the company's own filings do establish is that tariffs, global trade policy and Chinese-concentrated material supplies are already business considerations for one of the county's best-known industrial companies.

That makes the outcome of the U.S.-China negotiations relevant locally even before negotiators determine whether they can reach a broader agreement.