The United States and China have formally finalized a trade understanding first reached last month in Geneva, a move that could ease tensions between the world’s two largest economies.
The deal, which includes a Chinese commitment to deliver rare earth minerals essential to key US industries, was signed two days ago, US Commerce Secretary Howard Lutnick said in an interview with Bloomberg.
“They’re going to deliver rare earths to us” and once they do that, “we’ll take down our countermeasures,” Lutnick told Bloomberg News in an interview.
The materials, vital for manufacturing in sectors ranging from defense to green energy, had become a point of friction in recent years.
China’s Commerce Ministry echoed Lutnick’s announcement, confirming that the agreement’s framework had been finalized and that Beijing would continue its system of export permits for controlled items.
Lutnick also added that the White House has “imminent plans to reach agreements with a set of 10 major trading partners”.
Markets cheer progress in trade talks
The trade deal helped lift investor sentiment, with Asian equities and European futures posting gains.
A key gauge of global stocks touched a fresh record high amid optimism that further trade agreements could follow.
The finalized US-China deal represents a key milestone after repeated setbacks in earlier talks, including accusations from both sides over the past year of breaching informal accords.
However, the agreement remains contingent on future actions, particularly China’s timely and consistent export of rare earth supplies.
A White House official confirmed that the terms of the Geneva accord have now been formally codified and will guide implementation going forward.
White House targets trade deals with 10 nations
Beyond the China deal, the Biden administration is preparing to finalize a broader package of trade agreements with as many as 10 key trading partners.
Lutnick said these pacts would be prioritized in alignment with President Donald Trump’s July 9 deadline, when paused tariff increases are due to be reconsidered.
“We’re going to do top 10 deals, put them in the right category, and then these other countries will fit behind,” Lutnick told Bloomberg Television.
While he did not disclose which nations are included in the initial round of negotiations, Trump hinted that India is among them.
A team of Indian trade officials led by chief negotiator Rajesh Agarwal is in Washington this week for talks aimed at resolving differences and moving toward a deal.
Japan, another major trading partner, is also engaged in negotiations. Its chief trade negotiator, Ryosei Akazawa, departed for Washington this week for a seventh round of talks.
Japan has raised concerns over US plans to impose 25% tariffs on automobiles.
At a press briefing in Tokyo, Japanese Chief Cabinet Secretary Yoshimasa Hayashi acknowledged awareness of Lutnick’s comments but declined to provide details.
“Japan and the US are currently discussing the series of US tariff measures, and we will continue to make our utmost efforts on the matter as our top priority,” he said.
As the July 9 deadline approaches, Washington appears to be using the China deal as a springboard for reshaping trade ties more broadly, aiming to reduce tariff risks and bring more predictability to global trade.
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