US-China trade agreement finalized, focus remains on rare earthly export, Washington to 'take off measures' | Mint

The US and China have completed a trade agreement that was initially reached in Geneva last month, according to a Bloomberg News report, citing US trade secretary Howard Lutnick. He also noted that the White House has emerging plans to negotiate agreements with ten important trading partners. The agreement was signed two days ago, which formalized the conditions agreed during the trade conversations, including China’s commitment to providing rare earthly exports. In an interview with Bloomberg News, Lutnick said, “They are going to deliver rare earth to us,” and as soon as they do: “We will take our countermeasures.” The China agreement explains the conditions discussed during trade negotiations between Beijing and Washington this year, which was a major milestone following accusations of violating previous agreements. However, its success still depends on future actions by both countries, especially China’s export of rare earth elements. Lutnick also informed that US President Donald Trump planned to finalize a set of trade transactions in the next two weeks before the reciprocal tariff date on July 9. “We’re going to do the top ten transactions, put it in the right category, and then these other countries will be left behind,” he said. However, Lutnick gave no information about the countries associated with the latest trade transactions, although Trump previously hinted at an agreement with India. The Rajesh Agarwal-led team of Indian officials is planned to meet the Washington officials within the next two days this week to reach a consensus, the report states. Trump has decided to send ‘letters’ to the trade partners who emphasize the conditions if an agreement is not reached before the deadline. Lutnick mentions that countries will be classified into ‘real buckets’ on July 9. Trump can also extend deadlines to facilitate conversations. “Those who have offers will have offers, and everyone who negotiates with us gets an answer from us and then they go to the package,” Lutnick said. “If people want to come back and negotiate further, they are entitled, but the tariff rate will be determined and we will go,” he added. On April 2, Trump announced reciprocal rates on trading countries, but later interrupted it for 90 days to allow negotiations. The China Accord Lutnick described is far from a comprehensive trade transaction that addresses thorny questions about fentanyl trade and US exporters’ access to Chinese markets. After an initial negotiating round in Geneva which led to tariff reductions by both countries, the US and China accused each other of violating their agreement. After further discussions in London this month, negotiators from both countries said they had achieved a mutual understanding, while the approval of Trump and President Xi Jinping is still pending.