US and China Reach Trade Agreement

President Trump announced a trade deal with China. (AI image)

President Donald Trump announced a trade deal with China. China confirmed this news. They also mentioned that the US will cancel some restrictive measures.

Key Points of the US-China Trade Deal

Trade Agreement Finalized

President Trump stated that the US and China have reached a trade agreement. He also hinted at a possible deal with India.

Details of the Agreement

Commerce Secretary Howard Lutnick told Bloomberg TV that the deal was finalized earlier this week. However, specific details were not shared.

“We just signed with China the other day,” Trump said. Lutnick confirmed the agreement was “signed and sealed” two days before.

Background of the Deal

This development follows early talks in Geneva in May. Both countries agreed to delay big tariff increases. These tariffs were threatening trade between the two nations.

Later talks in London set up a framework for negotiations. Trump’s recent deal seems to formalize these arrangements.

Impact on Rare Earth Exports

China recently sped up approvals for rare earth exports. These materials are crucial for high-tech products like electric vehicles. Beijing’s export restrictions on rare earths have been a major issue.

The Chinese Commerce Ministry said they are speeding up the review process for rare earth export licenses. They have approved several applications that meet the requirements.

Economic Impact

These policy changes are affecting both the US and Chinese economies.

• The US economy declined by 0.5% from January to March. This was partly due to increased imports before potential tariffs.
• Chinese manufacturing profits dropped by over 9% in May. Car manufacturers faced significant losses.

Future Trade Deals

President Trump and US officials are optimistic about securing more trade agreements. They mentioned potential deals with many countries, including India.

“We’re going to have deal after deal after deal,” Lutnick said.