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Donald Trump stated on Thursday that a trade deal had been signed between the US and China, following an understanding reached in London regarding a ceasefire in their dispute.
“We just signed with China yesterday,” the president announced at the White House, providing no further details.
A White House official confirmed that the US and China had reached an agreement to implement the Geneva agreement, which was a result of trade talks held in May.
It was reported on Thursday that Washington and Beijing had put in writing what had been previously negotiated but not formally documented. Prior to the London talks, US officials had expressed the desire for a handshake deal with the Chinese, although some experts believed having a written document was essential.
The Geneva agreement involved a significant reduction in tariffs for 90 days as the two nations worked towards a comprehensive trade accord. However, disagreements over Chinese rare earth exports and US export controls had caused the deal to falter.
Treasury secretary Scott Bessent led a team in talks with Chinese vice-premier He Lifeng in London to resolve the impasse. Following the discussions, commerce secretary Howard Lutnick confirmed that the deal reached in Geneva had been finalized.
Sean Stein, president of the US-China Business Council, expressed hope that the deal would bring more certainty and fairness to US-China trade.
The Chinese embassy in Washington declined to provide any further information regarding the deal.
As the Trump administration aims to reach trade agreements with various partners before the deadline of July 9, talks have been ongoing with countries such as India, Vietnam, South Korea, Japan, and the EU.
While the UK and China have made progress in lowering tariffs, additional tariffs on Chinese imports remain in place due to concerns over drug precursors.
The administration is also considering global tariffs on imports in various sectors including semiconductors, consumer electronics, aerospace parts, lumber, copper, pharmaceuticals, and critical minerals.