US and China agree on trade deal

The United States and China have finalized a trade agreement, marking a step toward better relations between the two nations. U.S. Commerce Secretary Howard Lutnick announced that the deal, first discussed in Geneva last month, was signed recently. As part of the agreement, China will supply rare earth materials, essential for industries like technology and manufacturing, while the U.S. will ease some of its trade restrictions.

This deal aims to stabilize ties that have been rocky in recent months. The agreement comes after talks in London between U.S. officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng. Both sides worked to confirm the details, with China’s Commerce Ministry also acknowledging the progress.

The deal is seen as a win for President Donald Trump, who is pushing for more trade agreements with major partners. Lutnick hinted that similar deals with the top 10 U.S. trading partners are in the works, with some expected soon. This trade truce could boost markets, as seen in rising stock prices and positive reactions in places like Hong Kong.

However, some experts, like those at JP Morgan, warn that new trade policies might slow global growth and raise inflation risks in the U.S. Despite these concerns, the agreement signals hope for calmer economic ties and could pave the way for more deals before a July 9 deadline.