PressAdda
Kathmandu – U.S. President Donald Trump has announced that the United States and China have reached a trade settlement agreement. “We made a deal with China yesterday,” Trump said Thursday at the White House, though he did not provide further details.
Following negotiations in London two weeks ago, both countries agreed to develop a framework to implement the earlier Geneva agreement. According to Financial Times, citing U.S. officials, the two sides may have formalized their prior understanding into a written document.
China’s Ministry of Commerce confirmed the agreement, stating that export licenses for controlled goods would be issued “in accordance with the law,” and that the U.S. would lift certain trade restrictions imposed on China. No further details were provided.
After Trump initiated the trade war, China had halted exports of rare earth minerals. Under the new agreement, exporters are expected to receive approval to resume sales to the U.S.
On April 2, Trump had declared a “Tariff Liberation Day,” announcing a 10% tariff on all trade partners and higher “reciprocal” tariffs on major competitors. While most countries refrained from retaliating, China responded with counter-tariffs.
As the tariff battle escalated, U.S. duties on Chinese goods soared to 145%, while China imposed up to 125% on American imports. However, within six weeks, Trump was forced to backtrack, reducing tariffs to 30% following a Geneva meeting in May, where both sides agreed to a 90-day truce and a 115-point reduction in duties.
Currently, the U.S. maintains a 30% tariff on Chinese goods, including a 20% levy related to fentanyl precursor chemicals. China, in turn, has imposed a flat 10% tariff on all U.S. products.
Despite the truce, both nations have accused each other of violating the Geneva terms. The U.S. claims China failed to ease rare earth exports, while China criticizes U.S. restrictions on jet engine parts, chip design software, and student visas.
To accelerate negotiations, Trump and Chinese President Xi held a 90-minute phone call three weeks ago. That led to the London meeting, where both sides agreed on a framework for implementing the Geneva deal, now formalized in writing.
