US signed a trade deal with China, says Trump

President Donald Trump said that the United States has signed a trade agreement with China. It is also planned to conclude a similar agreement with India.

Trump said this during his speech at the White House.

“We just signed a deal with China,” the American leader said

Trump also stressed that America plans to sign the same agreement with India. At the same time, he added that America will not necessarily negotiate with all countries. Some countries will be sent messages that “now you pay tariffs of 25-45%”.

“This is an easy way to do it. However, my people do not want to do it that way. They want to conclude more deals than I would do,” Trump summed up.

As you know, the countries had to agree on a full-fledged agreement by August 10. Otherwise, tariff rates will soar again: the United States can raise them to 145%, China – to 125%.

According to US Commerce Secretary Howard Lutnick, the final agreement regulating tariffs between the two countries was signed two days ago. Its content reflects the compromise reached during two rounds of negotiations – first in Geneva and then in London.

“This agreement was signed and certified two days ago,” Lutnick said.

The agreement provides not only for tariff reductions, but also for mutual commitments: China will resume supplies of rare earth elements to the United States, in return for which Washington will gradually lift a number of restrictions on exports to China of strategically important materials, including ethane (used to make plastics in China), software for microcircuits and jet engines.

However, these restrictions will not be lifted until magnets start coming from China, Lutnick said.

“They will supply us with rare earths,” and once they do, “we will lift our countermeasures,” Lutnick said.

Final approval of the agreement is expected from US President Donald Trump and Chinese President Xi Jinping.

Tags: China, USA