The U.S. and China have finalized a trade understanding, building on an agreement reached last month in Geneva. Commerce Secretary Howard Lutnick confirmed the deal, which was signed two days ago, noting that the White House has immediate plans to secure agreements with ten other major trading partners.
What Happened: The accord with China codifies terms established during recent trade discussions between Beijing and Washington.
A key component of this agreement is China’s commitment to supply rare earths, critical materials used in a wide array of products, from wind turbines to jet engines.
“They're going to deliver rare earths to us,” Lutnick told Bloomberg News in an interview, adding that once the deliveries commence, “we'll take down our countermeasures.”
However, the Chinese Foreign Ministry in Beijing did not immediately respond to Benzinga’s inquiries.
This China agreement marks a significant milestone, especially after both nations previously accused each other of violating earlier “handshake accords.” Yet, its success hinges on future actions, particularly China’s export of rare earth materials.
Why It Matters: Lutnick also informed Bloomberg Television that President Donald Trump is prepared to finalize a series of trade deals within the next two weeks, aligning with the president's July 9 deadline to reinstate higher tariffs that were paused in April.
“We're going to do top 10 deals, put them in the right category, and then these other countries will fit behind,” Lutnick stated.
While he didn’t specify which nations would be part of this initial wave, Trump had previously indicated nearing an agreement with India.
The President has also stated he might send “letters” dictating trade terms if agreements aren’t reached in time, with countries being sorted into “proper buckets” by July 9.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, ended higher on Thursday. The SPY was up 0.78% at $611.87, while the QQQ advanced 0.94% to $546.22, according to Benzinga Pro data.
On Friday, the futures of the S&P 500, Dow Jones and Nasdaq 100 indices were trading higher.
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