US Commerce Secretary reveals what China trade deal really means
US Commerce Secretary Howard Lutnick (Photo: Getty Images)
US Secretary of Commerce Howard Lutnick revealed the details of the trade agreement signed between Washington and Beijing, which President Donald Trump mentioned the day before, according to Bloomberg.
During a speech at the White House on Thursday, Trump hinted that the US had signed a trade agreement with China but did not reveal its details.
US Secretary of Commerce Howard Lutnick stated that the agreement was signed two days earlier and formalizes the understandings reached between Beijing and Washington during negotiations in Geneva and London.
The agreement specifically includes China resuming shipments of rare earth metals to the US, which are essential for manufacturing wind turbines, jet engines, and other high-tech products.
In response, the US is prepared to lift previously imposed restrictions on exports to China, including ethane, microchip software, and jet engine components.
“They’re going to deliver rare earths to us. And once they do that, we’ll take down our countermeasures,” Lutnick said.
He added that Trump is ready to finalize a series of trade agreements within the next two weeks, by July 9.
This is expected to happen during the next round of talks in London in early July, pending approval from President Trump and Chinese President Xi Jinping.
However, as Bloomberg noted, the agreement described by Lutnick with China is not a comprehensive trade deal and does not cover complex issues such as illegal fentanyl trafficking or expanding access for American exporters to the Chinese market.
US-China tariff war
At the beginning of April, US President Donald Trump announced the introduction of import tariffs on goods from most countries that have trade relations with the US. The new rates ranged from 10% to 49%.
However, on April 9, the White House suspended these tariffs for 90 days, until July 9. During this period, Washington plans to conduct individual negotiations with each partner country to reach bilateral trade agreements.
The most intense escalation in US trade policy occurred in relations with China. Both sides repeatedly responded by raising tariffs against each other, resulting in rates reaching 145% on the US side and 125% on Beijing’s side.
Later, the countries began negotiations on a new trade agreement. These talks took place in several stages and were difficult. It was stated that progress required the involvement of President Trump and President Xi Jinping.
During the negotiations, China lifted its ban on the export of rare earth minerals and magnets to the US.
