Daijiworld Media Network- Washington

Washington, Jun 30: In yet another attempt to ease the simmering economic tensions between the world’s two largest economies, the United States and China have reached a fresh trade agreement. However, the announcement has raised more questions than answers, with both sides offering only vague statements and few concrete details.

US President Donald Trump, speaking to reporters, confirmed that a new deal had been signed “the other day”, but did not elaborate. Meanwhile, China's Commerce Ministry acknowledged the agreement and indicated a willingness to approve export applications for rare earth minerals -vital for US manufacturing and tech sectors - but offered no clarity on broader issues like export controls or tariff structures.

US Treasury Secretary Scott Bessent later told Fox Business that Beijing had agreed to ease the export of Chinese rare earth materials, in exchange for the lifting of certain US-imposed restrictions. Yet, the precise nature of what each side has conceded remains unclear, reinforcing criticism that this may be more of a political performance than a substantive breakthrough.

Trade analysts, including Jeff Moon, a former diplomat and trade official, expressed scepticism. “The silence surrounding the actual terms of the deal is concerning. It suggests there may be far less to this agreement than what is being implied,” Moon observed.

This deal follows a series of earlier efforts to patch over the widening cracks in the US-China trade relationship. Just weeks ago, both countries agreed in Geneva to reduce steep tariffs — some as high as 145% — imposed on each other’s goods. That deal temporarily averted a full-scale trade freeze but left fundamental issues unresolved.

Despite the new agreement, experts argue that deep-rooted challenges persist. The US continues to accuse China of intellectual property theft, forced technology transfers, and market manipulation — all of which remain unaddressed in the current pact.

“It’s a start,” said trade scholar Eswar Prasad from Cornell University, “but it does not address the underlying trade imbalances or the systemic issues that led to the conflict in the first place.”

At the same time, Trump’s broader tariff war continues to stir uncertainty. Having imposed a blanket 10% tariff on imports from all countries, he had also proposed reciprocal tariffs — ranging from 11% to 50% — on nations with which the US runs a trade deficit. Those were paused for 90 days, a grace period that ends July 8. However, the President now says he may simply send letters outlining what each country must pay to access the US market, bypassing negotiations altogether.

Meanwhile, relations with Canada took a sudden turn, with Trump announcing an immediate halt to trade talks over Canada’s plan to implement a 3% digital services tax. The tax, which would be retroactive and impact major US tech firms, drew Trump’s ire as he labelled it “a direct and blatant attack on our country.”

While this week’s US-China deal may have avoided further escalation — for now — the road ahead remains murky. With multiple deadlines approaching, tariff threats looming, and key disagreements still unresolved, the world watches as two economic superpowers continue their high-stakes game of trade chess.