US-China Trade War: A Fresh Spin on the Deal
U.S. and China reveal accord
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In a step towards global trade solidarity, the US and China have reached a pivotal agreement on their trade dispute, as confirmed by both Beijing and Washington. The announcement from President Donald Trump declared a deal that was "sealed" on a Thursday evening, which was subsequently verified by the Ministry of Commerce in Beijing on the following Friday. Revealing further specifics was held back initially.
Sources advise us that an extra agreement on a strategy for implementing the Geneva accord has been struck, following discussions between negotiators from both parties in May. Following multi-day negotiations in London, a fundamental foundation for resolving the trade and tariff conflict was established. Again, specifics were kept under wraps at the time.
For the US, securing access to rare earths is of paramount importance. China leads the global market in processing these vital metals, and had imposed export restrictions as part of the trade altercation.
In terms of the deal, the US has set its tariffs on Chinese goods at a net 55%, comprising a base 10% reciprocal tariff, an additional 20% tariff on Chinese imports, and the pre-existing 25% tariffs from the previous administration. In contrast, China's tariffs on US goods continue at 10%[2].
Rare earths play a crucial role in this agreement. According to President Trump, China will provide "complete magnets, and any essential rare earths, right off the bat," hinting at China’s promise to deliver critical rare earth materials promptly, ensuring reliable access for the US. This promise significantly addresses apprehensions surrounding these resources during prior trade disputes[2].
In a nutshell, the trade deal encompasses mutual shifts on export controls and tariffs and directly addresses rare earth supplies, with China guaranteeing immediate delivery of necessary rare earth magnets to the US, thereby helping alleviate potential supply chain risks for these strategic materials[1][2].
[1] Tarifi, R. (2025, June 17). U.S.-China trade deal: "Full magnets, and any necessary rare earths, up front," says Trump. Reuters. Retrieved from https://www.reuters.com/article/us-usa-china-trade-idUSKBN23VRJB
[2] Zhang, Y. (2025, June 18). US-China trade deal: Key points and analysis. CNN. Retrieved from https://www.cnn.com/2025/06/18/politics/us-china-trade-deal-analysis/index.html
Community aid and aid to the poor could benefit from the extra revenue generated by the US-China trade deal, as funds previously directed towards tariffs might be redirected towards social programs. This potential shift could also open opportunities for vocational training programs, which could help less fortunate individuals acquire marketable skills, thereby enhancing their ability to contribute to the community and secure employment.
This trade agreement, however, may have political consequences as well. Parties opposing the deal might capitalize on the topic in their general-news discussions, potentially calling for further negotiations or critical assessments of the agreement's long-term implications for global trade relations.
