Markets Reacted To The "rare Earth Thaw" Between The US And China

• 11.06.2025, 13:25

Donald Trump and Xi Jinping will review the agreement reached.

U.S. and Chinese officials say they have agreed on a framework agreement to resume a trade truce and lift China's restrictions on rare earth metal exports. However, there was no sign of a lasting resolution to trade tensions.

The Reuters writes that U.S. Commerce Secretary Howard Lutnick said the framework agreement "fleshes out" the Geneva deal to ease bilateral duties. He said the new agreement would "in a balanced way" lift restrictions on China's exports of rare earth minerals and magnets, as well as some of the recent U.S. export restrictions.

For his part, Chinese Vice Commerce Minister Li Chenggang said a framework agreement on trade has been reached in principle and will be presented to U.S. and Chinese leaders.

The two sides have until Aug. 10 to agree on a more comprehensive deal to ease the trade war, or else duties will jump from 30 percent to 145 percent on the U.S. side and 10 percent to 125 percent on China's side.

U.S. President Donald Trump's trade policies have caused turmoil in global markets, wreaked havoc at major ports and cost companies tens of billions of dollars in lost revenue and additional costs.

After reaching a framework agreement between the U.S. and China, global stock markets have recovered losses since Trump's "Emancipation Day" and are near record highs. Investors hit by previous turmoil reacted cautiously to the deal, with MSCI's index of Asia-Pacific shares outside Japan up 0.57%.

At the same time, there were signs of easing restrictions in China as several companies said they had received export licenses from Chinese authorities.