Trade Pact Between the US and China
China and the United States have reached a trade agreement aimed at stabilizing relations and easing tensions, following a meeting between President Donald Trump and Chinese leader Xi Jinping.
Key Elements of the Agreement
- Suspension of Export Controls:
- China will lift additional export controls on rare earth metals, including gallium, germanium, antimony, and graphite.
- US Tariff Concessions:
- Washington will pause some of Trump's reciprocal tariffs on Chinese goods for an additional year.
- Rare-Earth Magnets:
- China will suspend broad restrictions on rare-earth magnets.
- In exchange, the US will scale back the expansion of curbs on Chinese companies.
- Fentanyl-Related Tariff:
- The US will reduce a tariff related to fentanyl from 20% to 10%.
- China's Agricultural Purchases:
- China committed to resuming the purchase of American soybeans and other farm goods.
This agreement signifies a step towards stabilizing US-China trade relations, addressing export controls, and tariff concerns, while also promoting agricultural trade.
