U.S. and China Sign Trade Agreement Amid Ongoing Economic Tensions
President Trump announced a trade agreement with China, but details remain undisclosed as both nations navigate complex economic relations.
Overview
- President Trump announced a trade agreement with China, but specifics were not provided during the announcement.
- Commerce Secretary Howard Lutnick confirmed the signing of the trade deal earlier this week, reiterating the lack of details.
- The agreement aims to reduce punitive tariffs amid ongoing trade tensions between the U.S. and China.
- China is expediting approvals for rare earth exports, indicating a response to the trade deal discussions.
- The U.S. economy faced a contraction of 0.5% annually, highlighting the impact of trade policies on both nations.
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Analysis
Center-leaning sources frame the trade agreement between the U.S. and China with a focus on President Trump's announcements, often highlighting the lack of details provided. They exhibit skepticism regarding the agreement's substance, reflecting a cautious perspective on the implications of the deal amidst ongoing tensions and previous tariff escalations.
Commerce Secretary Howard Lutnick confirmed to Bloomberg TV that the deal was signed earlier this week.
President Donald Trump announced that the U.S. and China have signed a trade agreement.
Lutnick and Trump did not disclose any specifics about the agreement.
The agreement struck in May in Geneva called for both sides to reduce punitive tariff hikes imposed during Trump's trade war escalation.
The agreement was reached following initial talks in Geneva that led to the postponement of massive tariff hikes between the two countries.
China is accelerating approvals for exports of rare earths despite not announcing any new agreements.
The Chinese Commerce Ministry is expediting the review of export license applications for rare earths and has approved some compliant applications.
China's Commerce Ministry confirmed on Friday that both sides had finalized the framework details.
The U.S. and China have finalized a trade deal framework.
The U.S. economy contracted at a 0.5% annual pace from January through March, with the surge in imports contributing to the decline.
Factory profits in China dropped over 9% in May compared to the previous year, with automakers being significantly impacted.
The world's two largest economies are being negatively impacted by rapidly changing policies.
Articles (7)
Center (5)
"…The U.S. and China have agreed on the framework for a trade deal, both nations say."
CBS News·5d·"…The agreement struck in May in Geneva called for both sides to scale back punitive tariff hikes imposed as Trump escalated his trade war and sharply raised import duties."
Fortune·5d·"…The U.S. and China have confirmed details of a trade framework that seeks to allow rare earth exports and easing of tech restrictions, according to a statement released by China’s Ministry of Commerce on Friday afternoon."
NBC News·5d·"…The agreement struck in May in Geneva called for both sides to scale back punitive tariff hikes imposed as Trump escalated his trade war and sharply raised import duties."
NPR·5d·"…The agreement follows initial talks in Geneva in early May that led both sides to postpone massive tariff hikes that were threatening to freeze much trade between the two countries."
Associated Press·5d·FAQ
The agreement includes China approving export permits for controlled items, particularly rare earths, while the U.S. will cancel a series of restrictive measures against China. It formalizes a framework agreed upon in prior talks to reduce tariffs and ease trade tensions.
Under the deal, the U.S. tariffs on Chinese goods are maintained at 55%, which includes a baseline reciprocal 10%, a 20% tariff on Chinese imports, and pre-existing levies from earlier policies. China’s tariffs remain at 10%.
Rare earths are crucial for high-tech products such as electric vehicles, robots, and wind turbines. China’s acceleration in export approvals for these materials addresses prior export controls that had threatened global production and was a major point of contention in trade discussions.
The U.S. economy experienced a contraction of 0.5% annually, indicating that trade policies and tariffs have had negative effects on economic growth for both countries.
Initial talks in Geneva in early May postponed major tariff hikes. Subsequent negotiations in London established a framework for the deal, which was formally signed following ongoing discussions to reduce trade tensions and manage export controls.
History
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