Key points
- US and China have agreed on a framework to expedite rare earth exports
- Both sides previously lowered mutual tariffs
- A White House official confirmed a new agreement has been “signed and sealed” following London talks
WASHINGTON, United States: The White House signalled trade progress with China on Thursday, with an official stating that both sides had reached an understanding on issues including expediting rare earth shipments to the United States.
Following talks in Geneva in May, Washington and Beijing had agreed to temporarily lower steep tit-for-tat tariffs on each other’s products.
China also committed to easing some non-tariff countermeasures, but US officials later accused Beijing of violating the pact and deliberately delaying the approval of export licences for rare earths.
Both parties eventually agreed on a framework to advance their Geneva consensus after further discussions in London this month.
“Just signed”
On Thursday, a White House official told 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 followed Trump’s remarks at an event, where he stated that Washington had “just signed” a deal relating to trade with China, without offering further detail.
When asked about Trump’s comments on Bloomberg TV, US Commerce Secretary Howard Lutnick referred to the London negotiations, stating that the framework deal – which required high-level approval – had now been “signed and sealed.”
Separately on Thursday, the White House also indicated that Washington might extend a July deadline, when steeper tariffs affecting dozens of economies are set to take effect.
While Trump imposed a sweeping 10 per cent levy on most trading partners earlier this year, he had announced – then paused – higher rates on numerous economies during negotiations.
That pause is due to expire on 9 July.
Plans to prolong the pause
When asked whether there were plans to prolong the pause, Press Secretary Karoline Leavitt told reporters: “Perhaps it could be extended, but that’s a decision for the president to make.”
“The deadline is not critical,” she added. “The president can simply offer these countries a deal if they refuse to present one by the deadline.”
This means Trump can “select a reciprocal tariff rate that he believes is advantageous for the United States,” she said.
Lutnick told Bloomberg TV that Washington would announce some agreements in the coming week.
“Those who have deals will have deals, and everyone else who’s been negotiating with us, they’ll receive a response from us,” he said.
“9 July will proceed. And as the president said, if people wish to return and negotiate further, they’re welcome to – but that tariff rate will be set, and off we’ll go,” Lutnick added.
On the progress of trade talks, Leavitt said that US Trade Representative Jamieson Greer is “working very hard” and has had “good and productive discussions with many of our key trading partners.”
