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The United States and China have finalized a long-anticipated trade agreement that was initially reached in Geneva last month, according to U.S. Commerce Secretary Howard Lutnick. Speaking with Bloomberg Television, Lutnick confirmed, “That deal was signed and sealed two days ago,” though he did not share further details about its contents.
President Donald Trump also referenced the agreement during a White House event, stating, “We just signed with China yesterday,” without offering additional clarification. The deal is expected to significantly impact global supply chains and bilateral economic ties between the world’s two largest economies.
A key provision in the agreement includes China supplying rare earth materials—essential components for advanced electronics and defense technologies—to the United States. In exchange, the U.S. will lift existing restrictions on ethane exports to China, opening new energy trade channels.
Trump initially announced progress on the deal on June 11 via Truth Social, writing, “Our deal with China is done, subject to final approval with President Xi and me. Full magnets and any necessary rare earths will be supplied, up front, by China. Likewise, we will provide to China what was agreed to... We are getting a total of 55% tariffs, China is getting 10%.”
Lutnick also noted that the U.S. is nearing a separate trade agreement with India, signaling a broader strategy to secure critical resources and improve trade balances.
The U.S.-China deal marks a significant development in the evolving trade relationship between the two nations, especially amid growing global demand for rare earth elements and energy resources. It reflects renewed efforts to stabilize economic cooperation while addressing strategic resource dependencies.
