Trump Announces New Trade Deal with China: What You Need to Know!

BANGKOK (AP) — Recently, the U.S. and China reached a trade agreement, as announced by President Donald Trump. Commerce Secretary Howard Lutnick shared that this deal was finalized earlier in the week, but details remain sparse.

Trump mentioned, "We just signed with China the other day." Lutnick added that the deal was "signed and sealed" two days prior. It’s unclear whether this agreement differs from one announced two weeks ago, which aimed to ease access for American industries to critical magnets and rare earth minerals. These minerals play a crucial role in high-tech products, and their availability has been a point of tension in ongoing negotiations.

China’s Commerce Ministry stated on Friday that both countries have “further confirmed the details of the framework,” yet it didn’t explicitly address U.S. access to those vital rare earths. They did mention that China would approve exports of controlled items in line with local laws, and the U.S. would lift various restrictions against China.

In early May, the U.S. and China had initial talks in Geneva that led to postponing significant tariff increases that could have stalled trade. The following discussions in London established a framework for negotiation, leading to this week’s agreement.

It’s notable that China had previously limited rare earth exports, creating friction in trade relations. However, this week, Beijing accelerated its review process for export licenses for rare earths, approving several compliant applications—a move that could ease tensions significantly.

The U.S. has been particularly focused on addressing the fentanyl issue in its trade dealings with China. Stricter regulations have been placed on precursor chemicals, which have been linked to the opioid crisis in the U.S. Trump’s administration imposed tariffs partly in response to this ongoing issue, highlighting the complex nature of trade negotiations.

Economically, both the U.S. and China are feeling the effects of their changing policies. Recent statistics reveal that the U.S. economy contracted at a 0.5% annual rate from January to March, while factory profits in China dropped over 9% from the previous year, significantly impacting the auto sector.

As negotiations continue, both nations are eyeing further agreements. Lutnick stated, “We’re going to have deal after deal after deal,” hinting at an optimistic outlook for future trade relations.

These developments not only shape the economic landscape but also reflect a growing interdependence amid rising tensions. For more information about international trade impacts, you can explore resources from sources like the World Trade Organization.

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