"US and China Reach Agreement on Exports of Rare Earth Elements": Deal signed between United States and China on the export of rare earth materials.
The US-China Trade Squabble: Recent Developments Unveiled
In a surprising turn of events, the White House signaled positive progress in the ongoing trade dispute with China on Thursday. An official confirmed that both nations have reached a understanding on critical topics, such as expediting the shipping of essential minerals, including rare earths, to the United States.
Post the talks in Geneva back in May, Washington and Beijing had agreed on a temporary lowering of hefty tit-for-tat tariffs on each other's products. China also pledged to relax some non-tariff countermeasures, although US officials later accused Beijing of breaching the agreement by delaying export license approvals for rare earths.
Further discussions in London this month led both sides to agree upon a framework for executing the Geneva consensus. On Thursday, a White House official informed AFP that the Trump administration and China have "agreed to an additional understanding for a framework to implement the Geneva agreement."
Trump had earlier mentioned signing a trade deal with China without providing specific details. When asked about Trump's remarks on Bloomberg TV, US Commerce Secretary Howard Lutnick referred to the London negotiations, stating that the framework deal, requiring top-level approval, has now been "signed and sealed."
Meanwhile, there's speculation that the July deadline for steeper tariffs being imposed on numerous economies might be extended. Although Trump introduced a 10% levy on most trading partners this year, he unveiled and subsequently halted higher rates for numerous nations during negotiations. The pause is scheduled to expire on July 9. When questioned if there were plans for an extension to the halt, Press Secretary Karoline Leavitt stated, "Perhaps it could be extended, but that's a decision for the president to make."
Leavitt also revealed that US Trade Representative Jamieson Greer is actively engaged in the negotiations with key trading partners and "has had good and productive discussions."
On the matter of rare earth minerals, which China dominates, Lutnick disclosed that Washington will announce some deals in the coming days. "Those who have deals will have deals, and everybody else who's been negotiating with us, they'll get a response from us," he said.
Programming Note: The latest US-China trade agreement, brokered after intensive talks in London in May and June, includes key components such as a tariff truce, significant rare earth mineral shipments from China to the US, and progress regarding export controls[1][2][4].
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Enrichment Data:1. Tariff Truce: The U.S. and China have restored a trade truce following these talks. The agreement includes China supplying full magnets and essential rare earths to the U.S., while the U.S. will provide agreed concessions[1].2. Tariff Levels: The U.S. tariffs on Chinese imports currently stand at 55%. The 55% rate will "definitely" not change in the near term, according to the US Commerce Secretary[1][3][4].3. Rare Earth Shipments: China has committed to providing essential rare earth materials to the U.S., signifying its importance in technology manufacturing given China's near-monopoly on these critical elements[1][4].4. Export Controls: China has promised to review and approve export applications for controlled items in compliance with its laws and regulations. In response, the U.S. will lift a series of restrictive measures against China in high-tech and strategic product categories[2].5. Additional Trade Measures: Besides rare earths, the deal involves the U.S. withdrawing certain countermeasures, such as restrictions on ethane exports to China. Other sectors mentioned as part of negotiations include chip design software, jet engine parts, and other sensitive technologies[4].
The US-China trade agreement, following talks in London, includes a tariff truce and significant rare earth mineral shipments from China to the US. This development is linked to the general news and finance, as it affects the business and politics of both countries, potentially impacting the global industry. The tariff truce may impact the finance sector in regard to the ongoing tariffs and future trade deals. The agreement's promise of essential rare earth material supply showcases China's dominance in this area, potentially influencing the technology industry on a global scale.
