US and China make progress on trade deal, reach rare earth understanding

The White House signaled trade progress with China on Thursday, with an official saying both sides have reached an understanding on issues including expediting rare earth shipments to the United States.

After 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 slow-walking export license approvals for rare earths.

Both sides eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month.

On Thursday, a White House official told AFP that President Donald Trump’s administration and China have “agreed to an additional understanding for a framework to implement the Geneva agreement.”

This clarification came after Trump told an event that Washington had “just signed” a deal relating to trade with China, without providing further details.

Asked about Trump’s remarks on Bloomberg TV, US Commerce Secretary Howard Lutnick referred to the London negotiations, saying the framework deal – which needed top-level approval – has now been “signed and sealed.”

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Separately on Thursday, the White House also indicated that Washington could extend a July deadline when steeper tariffs impacting dozens of economies are due to kick in.

While Trump imposed a sweeping 10 percent levy on most trading partners this year, he unveiled – then halted – higher rates on dozens of economies while negotiations took place.

That pause is set to expire on July 9.

Asked if there were plans to further the pause, Press Secretary Karoline Leavitt told reporters: “Perhaps it could be extended, but that’s a decision for the president to make.”

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“The deadline is not critical,” she said. “The president can simply provide these countries with a deal if they refuse to make us one by the deadline.”

This means Trump can “pick a reciprocal tariff rate that he believes is advantageous for the United States,” she said.

Lutnick told Bloomberg TV that Washington will announce some deals in the next week or so.

“Those who have deals will have deals, and everybody else who’s been negotiating with us, they’ll get a response from us,” he said.

“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,” Lutnick added.

On the progress of trade negotiations, Leavitt added that US Trade Representative Jamieson Greer is “working very hard” and has had “good and productive discussions with many of our key trading partners.”