The second round of U.S.-China trade talks has ended, resulting in a framework deal that will be subject to final approval from the presidents of both countries.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!,” said President Trump on Truth Social. In addition, rare earths and magnets will be provided up-front by China to the U.S. while Chinese students will be able to continue attending U.S. universities.
U.S.-China Deal Builds on Geneva Agreement
In a separate post, Trump added that he would work closely with Chinese President Xi Jinping in order to increase U.S. exports to China.
The full details of the deal are still scarce, although Commerce Secretary Howard Lutnick said that it will put “meat on the bones” of the U.S.-China agreement reached in Geneva last month. Lutnick also added that the U.S. will remove some of its export curbs without specifying which ones. These could possibly include semiconductors and aircraft parts.
The S&P 500 (SPX) is trading slightly higher as investors wait for final approval of the deal, as well as additional details. The benchmark index has closed in the green for three consecutive trading sessions.
