The United States and China have officially confirmed a new trade deal. This came shortly after US President Donald Trump announced that the agreement had been reached. China also stated that the US will cancel several restrictive measures as part of the deal.
Commerce Secretary Howard Lutnick told Bloomberg TV that the agreement was finalized earlier this week. He mentioned, “We just signed with China the other day,” adding that it was “signed and sealed” two days ago.
What Led to the Deal?
Talks between the two countries started in May in Geneva, where they agreed to hold off on raising tariffs. Later, discussions in London helped build a negotiation framework. Now, the latest deal appears to make those plans official.
Lutnick said, “The President likes to close these deals himself. He’s a dealmaker. We’re going to have deal after deal.”
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Rare Earths and Trade Tensions
China also announced that it is speeding up the process for approving rare earth exports. Rare earths are important materials used in high-tech products like electric cars and wind turbines.
Back in April, China had introduced strict rules on exporting seven rare earth elements, which worried countries like the US. These restrictions became a major issue in trade talks, even more than tariffs.
The Chinese Commerce Ministry has now approved several export applications and is reviewing others more quickly.
Impact on the Economy
Earlier this year, the US economy shrank by 0.5% between January and March. One reason was that people and businesses rushed to buy foreign goods before any new tariffs could be added.
Also Read: Japan Pushes US to Lift Auto Tariffs Before G7 Summit
China’s economy is also feeling the pressure. Manufacturing profits in China dropped over 9% in May, especially in the car industry. Overall profits from January to May were down by more than 1% compared to last year.
What’s Next?
Trump and other US officials are hopeful about signing more trade deals soon, including one with India. Lutnick added, “We’re going to have deal after deal after deal.”
