US-China Finalize Trade Deal Framework Amid Rare Earth and Tariff Tensions
Beijing/Washington – China on Friday confirmed a key breakthrough in its trade negotiations with the United States, revealing details of a newly established framework agreement that aims to ease escalating tensions over rare earth exports and punitive tariffs.
According to China’s commerce ministry, the US has agreed to cancel a set of “restrictive measures” against China, while Beijing will begin reviewing and approving export control items “in accordance with the law.” The confirmation comes after months of stalled talks and rising friction between the two economic giants.
A major sticking point in the negotiations had been rare earth elements critical materials used in electric vehicles, data storage devices, and national defence equipment. China, which holds a dominant share of the global rare earth supply, had begun requiring export licences in April. The move was widely interpreted as retaliation against former President Donald Trump’s sweeping tariffs on Chinese imports.
Temporary Tariff Reductions and Geneva Talks
Earlier discussions in Geneva had resulted in a mutual agreement to temporarily ease tit-for-tat tariffs. China also pledged to relax certain non-tariff countermeasures. However, US officials later accused Beijing of breaching the pact by stalling on the approval of rare earth export licences.
Recent negotiations held in London produced a more defined framework to implement the initial Geneva consensus. A White House official confirmed to AFP on Thursday that the two sides had “agreed to an additional understanding for a framework to implement the Geneva agreement.”
President Trump, speaking at a separate event, ambiguously noted that the US had “just signed” a new trade deal with China but did not provide details. Beijing’s official confirmation followed on Friday, with the commerce ministry urging both sides to “meet each other halfway.”
US Considers Extending July Tariff Deadline
In a related development, the White House signaled a possible extension of a looming July 9 deadline, when steeper tariffs on dozens of global trading partners are set to take effect. The Trump administration had earlier imposed a 10 percent levy on most trading allies, but temporarily paused additional hikes to allow room for negotiations.
White House press secretary Karoline Leavitt told reporters that the deadline was “not critical” and that President Trump retains the authority to offer or impose deals unilaterally.
“He can pick a reciprocal tariff rate that he believes is advantageous for the United States,” she added.
Global stock markets responded positively, with several Asian and European exchanges climbing on the news of potential trade relief and renewed US-China cooperation.
