Beijing had suspended exports of a broad range of critical minerals and magnets in response to Washington's tariff hikes

The US and China have finalized a trade understanding first brokered last month in Geneva, US Commerce Secretary Howard Lutnick has announced, signaling a potential thaw in the trade war. The deal includes a commitment by China to resume supplying rare-earth minerals critical to numerous industries, Lutnick told Bloomberg on Friday.   

Tensions between the world's two largest economies escalated in April when US President Donald Trump imposed sweeping tariffs on over 90 countries, including China, citing trade imbalances. Beijing retaliated, triggering spiraling tariff hikes that reached 145% by the US and 125% by China. After talks in Geneva last month, the two sides agreed to pause most new tariffs. But since then, each has accused the other of violating the terms and stalling negotiations on issues such as export controls.   

The latest agreement reportedly reflects terms negotiated in previous trade talks, but its success depends on the follow-through from both sides, particularly China's delivery of rare-earth materials.  

"They're going to deliver rare earths to us" and once they do that, "we'll take down our countermeasures," Lutnick told Bloomberg, adding that the trade deal was signed two days ago and that it cemented commitments made during earlier talks.   

The Geneva deal had reportedly faltered over China's curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft, and other goods to China.  

China's suspension of exports of a broad range of critical minerals and magnets had disrupted global supply chains vital to automakers, aerospace firms, semiconductor makers, and military contractors.  

A separate White House official cited by Reuters said that Washington had reached a rare-earth shipment agreement with Beijing focused on "how we can implement expediting rare earths shipments to the US again."  

China has been taking its dual-use restrictions on rare earths "very seriously" and has been vetting buyers to ensure that materials are not diverted to US military uses, Reuters said, citing an industry source. This has slowed down the licensing process.  

While addressing an event in support of the "big, beautiful bill" at the White House on Thursday, Trump said the US had signed a deal with China on Wednesday, without providing details, and suggested a separate agreement could be coming that would "open up" India. He hinted that a "very big" deal with India was in the works.