The United States and China have reached a new understanding to accelerate rare earth exports to the US, a significant step in easing trade tensions. This agreement follows recent talks where both nations settled on a trade framework aimed at improving cooperation on these critical materials.
Advancing the Geneva Consensus
This latest development builds upon earlier discussions in Geneva in May, where Washington and Beijing initially agreed to temporarily lower retaliatory tariffs on each other’s products. Although China had committed to easing certain non-tariff countermeasures at that time, US officials later accused Beijing of violating the pact by delaying export license approvals for rare earths.
Following subsequent talks in London this month, both sides finally agreed on a framework to advance the Geneva consensus. On Thursday, a White House official confirmed to AFP that President Donald Trump’s administration and China had “agreed to an additional understanding for a framework to implement the Geneva agreement.” This clarification came after President Trump hinted at a “deal” with China without providing specifics.
US Commerce Secretary Howard Lutnick, addressing Trump’s remarks on Bloomberg TV, referred to the London negotiations, stating that the framework deal, which required top-level approval, had now been “signed and sealed.”
Looming Tariff Deadline and Future Trade Deals
Separately, the White House also indicated that Washington might extend a July 9 deadline when steeper tariffs affecting dozens of economies are set to take effect. While President Trump had already imposed a 10% levy on most trading partners this year, he had previously unveiled and then paused higher rates on numerous economies during ongoing negotiations.
Press Secretary Karoline Leavitt stated, “Perhaps it could be extended, but that’s a decision for the president to make.” She emphasized that “The deadline is not critical,” and that the president “can simply provide these countries with a deal if they refuse to make us one by the deadline.” This implies that Trump can “pick a reciprocal tariff rate that he believes is advantageous for the United States.”
Commerce Secretary Lutnick confirmed that Washington plans to announce some trade deals in the coming week or so. He clarified, “Those who have deals will have deals, and everybody else who’s been negotiating with us, they’ll get a response from us.” He reiterated that “July 9 will go forward. And as the president said, if people want to come back and negotiate further, they’re entitled to, but that tariff rate will be set, and off we’ll go.”
Regarding the broader progress of trade negotiations, Leavitt noted that US Trade Representative Jamieson Greer is “working very hard” and has held “good and productive discussions with many of our key trading partners.”
