The US has agreed a deal with China over the shipment and supply of magnets and rare earth metals, easing months of ongoing US-China tensions.
A US-China trade deal has been formally agreed, President Donald Trump announced on Thursday. The two countries have reached an agreement on how to speed up the shipment of rare earth metals, in an effort to end months of trade tensions.
The deal comes shortly after discussions between the two sides in Geneva, Switzerland, where officials reached an informal understanding. It represents a significant step forward in trade relations between the world’s two largest economies.
One of the key parts of the deal is China’s promise to restart exports of rare earth materials to the US. These materials are very important for industries such as car manufacturing, electronics, aerospace and defence.
What did Trump say about the US-China trade deal?
Trump confirmed the agreement at the White House, describing it as an important step in improving trade relations. In a post on social media, he provided some rough details on what the agreement involved.
He wrote: ‘Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!).’
Trump added: ‘We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent! Thank you for your attention to this matter!’
A key starting point in healing US-China trade relations
Upon announcing the deal, US commerce secretary Howard Lutnick stated that once China starts delivering the rare earths, the US will remove some of the previous trade measures it had put in place.
China had earlier stopped these exports as a response to new US tariffs. This caused problems for companies around the world, as many rely on these materials to build important parts and equipment.
While this new deal shows progress, officials on both sides agree they still have a long way to go before finalising a trade agreement. The current deal helps with one important matter, but many trade issues between the US and China remain unresolved.
US close to agreeing further trade deals
Lutnick also confirmed the US government is close to finalising a series of trade agreements in the next two weeks. It plans to reinstate higher tariffs for many countries on 9 July, following a pause in April.
The president has indicated that if the parties do not finalise agreements by the deadline, he will send “letters” outlining trade terms to those nations. Trump did not specify which countries he plans to include in the initial group of agreements. However, he has previously hinted at a forthcoming deal with India on 26 June.
“We’re going to do top 10 deals, categorise them appropriately, and other countries will follow suit,” Lutnick said.
“Those who have deals will have deals, and everyone else negotiating with us will receive a response and be placed into that package.” He added that countries are welcome to renegotiate if they wish, but the administration will set the tariff rates.
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