The US and China Reach a New Framework Agreement on Trade Normalization

The US and China have agreed on a framework agreement after two days of negotiations in London, aimed at regulating and normalizing trade relations between the two countries. The parties have agreed on a series of steps designed to reduce tensions in mutual trade and have outlined key areas for further cooperation.

This is reported by AgroReview

Key Terms of the New Trade Agreement

China has promised to accelerate the export of rare earth metals, which are critical for American industries, including automotive and defense. At the same time, the US has agreed to ease export restrictions on software for semiconductor manufacturing, as well as on the export of nuclear and aerospace components, chemicals, and aviation parts. The lifting of the ban on Chinese citizens attending US universities is also expected. Final approval of the agreements is to take place at the leadership level of both countries.

Tariff Policy and Preliminary Agreements

US President Donald Trump characterized the relations between the states as “excellent” and announced that American tariffs on Chinese goods will be set at 55%, while China will maintain a 10% tariff. A previous agreement, which included a gradual reduction of tariffs by 115 points and a 90-day trade truce, was at risk of collapse, which prompted new negotiations in London.

The US will impose tariffs on Chinese goods at 55%, while China will keep a 10% tariff.

The new agreement is expected to be implemented before the end of the 90-day tariff pause, which concludes in August of this year.