Trade Truce Talks: U.S. and China Reach Rare Earth Agreement
U.S. and Chinese officials have agreed on a framework to restart their trade truce, addressing China's rare earth export restrictions. While the framework suggests easing of tariffs and restrictions, it offers limited resolution to longstanding trade issues. The agreement awaits final approval from respective leaders.
U.S. and Chinese officials announced a new framework on Tuesday to revive their trade truce, addressing China's restrictions on rare earth exports. The agreement follows intense negotiations in London and comes as both nations face economic strains from ongoing trade tensions.
The framework builds upon an earlier Geneva agreement to ease retaliatory tariffs that escalated to triple-digit levels. It aims to balance U.S. and Chinese export restrictions, though details remain sparse. Both sides will now seek approval from their respective presidents before any implementation.
The World Bank has reduced its global growth forecast amid these uncertainties, while markets remain cautious despite partial recoveries. The stakes are high, with tariff rates potentially soaring if no comprehensive deal is reached by August 10.
(With inputs from agencies.)
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