US-China Trade Agreement Paves Way for Future Deals

The United States and China have recently signed a trade agreement, according to President Donald Trump. Commerce Secretary Howard Lutnick confirmed that the agreement was sealed earlier this week, although specific details remain undisclosed.

This development stems from initial discussions in Geneva in May, which averted extensive tariff hikes between the two economic powerhouses. Negotiations continued in London, creating a framework that was eventually formalized with the latest agreement announced by Trump. China, on its part, has not disclosed new agreements, but has announced the acceleration of export approvals for rare earths, crucial for high-tech products.

The Geneva agreement proposed a reduction in punitive tariffs, despite some remaining, notably those affecting aluminum and steel. These changing policies have already impacted the US, where economic contraction was observed in the first quarter, partly due to a rush to purchase foreign goods before tariff implementations. China has also experienced a decline in factory profits, largely due to automaker downturns.

(With inputs from agencies.)