๐บ๐ธ๐จ๐ณ *BREAKING: U.S. and China Agree in Principle on New Trade Deal Framework*
After two days of intensive negotiations in London, the United States and China have reached an agreement in principle on a framework for a new trade deal. This development aims to implement agreements made during previous talks in Geneva, including a 90-day pause on escalating tariffs between the two nations.
๐ค Key Points:
- *Framework Agreement*: U.S. Commerce Secretary Howard Lutnick and China's Vice Commerce Minister Li Chenggang confirmed the agreement in principle, pending approval from Presidents Trump and Xi .......
- *Rare Earth Minerals*: The framework aims to resolve issues regarding rare earth minerals, which are critical for technologies and defense.
- *Tariff Reductions*: The agreement seeks to restore elements of the Geneva pact, which included tariff reductions and China's commitment to expedite export licenses for critical minerals.
- *Pending Approvals*: The final approval of this framework still awaits confirmation from U.S. President Donald Trump and Chinese President Xi .....
๐ Market Reaction:
Despite high investor anticipation, the announcement had little effect on U.S. stock futures, which slightly declined.
๐ What's Next?
While the framework represents a step forward in U.S.-China trade relations, analysts view the outcome as minimal progress, describing it as a reaffirmation rather than a breakthrough. The agreement's success will depend on the final approvals and the resolution of critical issues such as the flow of essential minerals vital to industries like electronics, automotive, and defense.
Stay tuned for further updates as the situation develops.