GENEVA TRADE DEAL SET – China Eases EXPORT RULES

Daily Report June 13,2025

In a pivotal effort to reshape trade dynamics, the United States and China have outlined a new framework for a Geneva trade deal, addressing ongoing trade barriers and supply chain issues.

At a Glance

President Trump initiated a deal with China to roll back punitive trade measures.
The framework aligns both nations to a previous truce from May, solidifying trade commitments.
China will lower restrictions on rare earth minerals vital for U.S. industries.
Tariffs will stay the same despite the agreement focusing mainly on supply chains and rare-earth minerals.

Framework of the U.S.-China Trade Deal

The trade deal framework, announced by Commerce Secretary Howard Lutnick, seeks to stabilize economic relations aimed at a broader Geneva consensus. The recent meetings between President Trump and President Xi covered various essentials, including a commitment from China to supply key magnets vital for U.S. technological advances. Tariffs are set at 55% and 10%, respectively, for the U.S. and China. Both nations aim to finalize these terms to foster better diplomatic relations.

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The two-day negotiations held in London served as a backdrop for this significant trade breakthrough. The focus remains on rectifying recent trade measures while leaving broader trade issues for future discussions. The agreement, pivotal for supply chains, impacts the technology sector as China agrees to relax rare-earth mineral export restrictions, improving U.S. access to critical resources.

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Barriers and Opportunities in the Deal

Despite the optimism surrounding the agreement, the current tariffs between the two might not change. The U.S. will roll back limits on specific exports like airplane parts and ethane, while proposed visa restrictions for Chinese students will be lifted. As part of the negotiation efforts, the U.S. stresses localizing critical production to overcome supply chain vulnerabilities. This trade truce, rooted in Geneva, signifies a move towards a more predictable economic relationship.

“our deal with China is done, subject to final approval with President Xi and me.” – President Donald Trump.

China is pushing for fewer technology sales restrictions, a move seen as essential for ensuring access to cutting-edge technology. This easing of restrictions serves as a crucial point within the deal framework, reflecting efforts to eliminate technological barriers and enhance cooperation in innovation-driven industries.

Looking Ahead: A Test of Diplomacy and Policy

Commerce Secretary Howard Lutnick expressed optimism about the approval process, mentioning that full details would be made public soon. The outcome of ongoing negotiations will shape the trajectory of both countries’ economic policies. The finalized deal stands as a testament to the fragility and potential of international diplomacy in maneuvering complex trade landscapes.

“The two sides should work towards each other, keep words and follow through with actions, demonstrate sincerity in honoring commitments, and make concrete efforts to implement consensus, jointly safeguard the hard-won outcomes of dialogue, continue maintaining communication and consultation, to promote steady and sustained growth of China-U.S. economic and trade relations and inject more certainty and stability into the world economy.” – Chinese Vice Premier He Lifeng.

Ultimately, the trade deal signals a new phase of U.S.-China relations, balancing cooperation and competition in the global economy. As both countries prepare for the agreement’s implementation, the world watches closely, ready to assess the impact on global supply chains and economic stability.