The White House has made a statement that could be a turning point in the escalating trade relations between the US and China. President Donald Trump announced the signing of a new trade agreement between the two countries, describing it as the result of successful negotiations, but refrained from disclosing details of the deal.
Additional information was provided by US Commerce Secretary Howard Lutnick. He said the pact was the result of agreements reached in May in Geneva. The signing took place last week and, as Lutnick emphasised, the document reinforces the key terms discussed earlier. One of the key points was China’s consent to supply rare earth metals to the US. The metals that are strategically important in the defence, aerospace and high-tech industries.
The US-China trade war intensified in April, when the Trump administration imposed extreme tariffs on Chinese goods, to which Beijing responded with symmetrical measures. Hence, the tariffs set all-time highs – 145% on the American and 125% on the Chinese side, a record instance in the contemporary history of trade relations between the two titans.
In mid-June, Trump had already hinted at a possible deal, saying Beijing had agreed to supply the US with magnets and rare earth minerals. In return, he said, Washington was willing to allow Chinese students to study at US universities, which had previously been restricted as part of retaliatory measures.
