US-China trade deal: Soon after US President Donald Trump announced a trade deal, China has also confirmed that details have been finalized. China also said that United States will ‘cancel a series of restrictive measures’.Earlier in the day, Trump said that the United States and China have reached a trade agreement. He also indicated an anticipated deal with India.According to Commerce Secretary Howard Lutnick’s interview with Bloomberg TV, the agreement was finalized earlier this week, though specific details were not disclosed.“We just signed with China the other day,” Trump said. Lutnick confirmed the agreement was “signed and sealed” two days prior.
US-China Trade Deal
This development follows initial discussions in Geneva in early May, where both nations agreed to delay substantial tariff increases that threatened bilateral trade. Subsequent talks in London established a negotiation framework, with Trump’s mentioned deal appearing to formalise these arrangements.Also Read | ‘Very big one’: Donald Trump hints India, US on cusp of ‘great’ trade deal; 10 things to know“The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal,” Lutnick said, according to an AP report.China disclosed earlier this week an acceleration in rare earth export approvals, crucial materials for high-technology products including electric vehicles. Beijing’s export restrictions on rare earths have been a significant point of dispute.The Chinese Commerce Ministry announced Thursday that Beijing was expediting the review process for rare earth export licence applications and had approved several applications that met requirements.Export restrictions on minerals overshadowed tariffs during recent trade talks between Beijing and Washington, following China’s implementation of licensing requirements for seven rare earth elements in April. This action potentially threatened to affect production of vehicles, robotics, wind turbines and advanced technological items in the United States and globally.The Geneva accord reached in May required both nations to reduce retaliatory tariff increases implemented during Trump’s trade war escalation. However, certain elevated tariffs persist, including Washington’s duties related to fentanyl trade and those on aluminium and steel.Also Read | Indian team in US for fresh talks on trade dealThese dynamic policy changes are negatively impacting both leading global economies.The US economy declined at a 0.5 per cent annual rate from January through March, partially due to increased imports as businesses and consumers acquired foreign products before Trump’s potential tariff implementation.Chinese manufacturing profits decreased by more than 9 per cent year-over-year in May, with automotive manufacturers experiencing significant losses. The January-May period showed a decline exceeding 1 per cent compared to the previous year.Trump and US officials expressed optimism about securing trade agreements with numerous countries, including India.“We’re going to have deal after deal after deal,” Lutnick said.
