US and China reach new trade agreement

President Donald Trump announced that the United States and China have recently signed a trade deal aimed at resolving the ongoing trade conflict between the two largest global economies.

Speaking at a White House event on Thursday evening, Trump confirmed the signing but did not offer further details. A White House official explained that the agreement establishes a framework to implement the Geneva accord, which was reached during talks in Switzerland last month and involved a temporary halt on tariff increases.

The official noted that the deal focuses on expediting shipments of rare earth minerals to the US. This development follows the Geneva agreement, which postponed significant tariff hikes for 90 days while both nations negotiated a more comprehensive deal.

Subsequent discussions in London helped outline the negotiation framework, and the recent deal formalizes these arrangements. Secretary of Commerce Howard Lutnick confirmed the agreement had been finalized days earlier but did not disclose specific terms.

China later acknowledged the agreement, stating it would approve export applications of controlled items according to the law, although it did not explicitly mention rare earths. A spokesperson for China’s Ministry of Commerce noted ongoing close communication between both sides and confirmed the approval process for export controls would continue, with the US reciprocating by lifting certain restrictions.

During the Geneva talks, China agreed to remove some non-tariff barriers imposed on US goods since April, though the exact rollback of these measures remained uncertain.

In retaliation for US tariffs, China had suspended exports of critical minerals and magnets, disrupting supply chains for industries like automotive, aerospace, semiconductors, and defense worldwide.

The US responded with its own export controls, restricting sales of semiconductor software, aircraft, and other products to China.

Earlier reports indicated China had temporarily granted export licenses for rare earth supplies to major US automakers amid these tensions. President Trump later mentioned a deal where China would supply magnets and rare earth minerals, while the US would allow Chinese students to continue studying in American universities.