Representatives of the USA and China have been negotiating since Monday – now US President Trump announces an agreement on the dispute over rare earth. There is also an agreement with tariffs. China has so far commented more cautiously.
After two-day talks of lower dealers in London, US President Trump has announced a fundamental agreement with China on disputed trade issues. According to him, both countries agreed to reduce export restrictions on rare earths. The formal approval of himself and China’s head of state XI Jinping is still pending, Trump wrote on his online language tube Truth Social.
According to the US President, the government in Beijing undertakes to deliver certain raw materials such as rare earth to the United States. In return, China receives “what was agreed,” wrote Trump. This includes, among other things, that Chinese students would get the opportunity to study at universities in the USA. No further details were mentioned.
Beijing speaks of “progress”
Trump also wrote that there was an agreement in the customs dispute between the world’s two largest economies. The United States would raise customs duties of 55 percent on Chinese goods, conversely, China determines a ten percent dial on US goods.
The duty rate of 55 percent would be a significant increase of 30 percent, which had been defined in Geneva in May in May. Before these negotiations, the United States and China had exposed its significantly higher tariffs and counter -tariffs.
Beijing has so far commented on the conversations in the British capital. Chinese government representatives spoke of “progress” and a fundamentally constructive exchange. The deputy head of government HE asked “as the next step” both sides to “reduce misunderstandings and strengthen cooperation”.
Before Basic cleaning announced
Already at night the negotiators had spoken of a fundamental cleaning in the trade and customs conflict without giving any further details. The result is to be presented to Trump and XI for withdrawal.
Vice Prime Minister He Lifeng and Minister of Commerce Wang Wentao took part in the talks in London for China. The United States sent US Finance Minister Scott Bessent and Minister of Commerce Howard Lutnick.
Merz: “is not at the expense of Europe”
Chancellor Friedrich Merz welcomed the trade agreement. “This is not at the expense of Europe, but that is another conflict that could be removed,” said the CDU politician. “I expressly welcome that. I very much hope that we will also succeed in reducing the trade conflicts with the Americans in a similar way and, if possible.”
He also believes that open markets, free trade and access to raw materials are the best solution for everyone involved.
Commercial war clouds prospects for global economy
The trade conflict between Beijing and Washington has had serious consequences for the global economy for months. With the end of the meeting, a way for further de -escalation had indicated in the tense trade relationships.
In mid -May, China and the USA in Geneva had spoken to each other for the first time since the escalation in the customs dispute. There, both sides agreed to temporarily reduce their tariffs for 90 days. Trump had increased the surcharges on goods from China to up to 145 percent in April. Beijing imposed export controls and moved to 125 percent with counter -tariffs on imports from the United States.
The trade war always causes nervousness on the stock exchanges and has clouded the prospects of the global economy. According to US information, London should be primarily about export controls and the delivery of rare earths. The dependence of many countries and industries from China is particularly large here. The government in Beijing can thus interrupt global supply chains.
