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.