Two days of trade talks resulted in what leaders called a framework agreement meant to solidify terms of a truce that the superpowers reached in Geneva last month.According to The New York Times, two days of trade talks between the United States and China have resulted in a framework agreement aimed at solidifying the terms of a truce reached in Geneva last month. President Trump announced on Wednesday that the two countries had struck a deal to roll back some of the punitive measures they had taken against each other’s economies in recent months, including the proposed restrictions on Chinese students attending U.S. universities.
The agreement, which followed marathon negotiations in London, will return the countries to the terms of a trade truce they had reached in May after weeks of escalating tensions. President Trump took to Truth Social to announce the news, writing, “OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. RELATIONSHIP IS EXCELLENT!”
While the full details of the agreement have not been released, it primarily involves China relaxing its restrictions on shipments of rare earth minerals and magnets needed by U.S. manufacturers. In return, the U.S. will roll back limits on exports of products and technology, including ethane and airplane parts, as well as the proposed visa restrictions. Both measures were intended to put pressure on China.
However, tariffs between the two countries will remain unchanged. President Trump stated that U.S. tariffs on China would be “a total of 55 percent,” combining the 30 percent tariff imposed on Chinese products in recent months with the 25 percent tariff from his first term. In reality, some tariffs on Chinese products are lower and many are significantly higher.
While President Trump referred to the agreement as a “deal,” officials did not announce progress on any other trade issues beyond rolling back the tit-for-tat measures taken against each other after the U.S. increased tariffs on Chinese products in April.
Source:Read More