(MENAFN) The US and China have finalized a trade deal, originally brokered last month in Geneva, aimed at easing tensions in their ongoing trade conflict. US Commerce Secretary Howard Lutnick told Bloomberg on Friday that China has committed to resuming exports of rare-earth minerals, essential for many industries.

The trade war escalated in April when President Donald Trump imposed tariffs on more than 90 countries, including China, citing trade imbalances. China retaliated with its own tariffs, leading to steep increases on both sides. The Geneva talks paused most new tariffs, but disputes continued over alleged violations and stalled negotiations on export controls.

The new agreement reflects terms from prior discussions, with success hinging on China’s actual delivery of rare-earth materials. Lutnick confirmed the deal was signed two days ago, reinforcing commitments made earlier. Once China resumes shipments, the US plans to roll back its countermeasures.

China’s earlier restrictions on critical mineral exports disrupted global supply chains affecting sectors like automotive, aerospace, semiconductors, and defense. Washington has worked to expedite rare-earth shipments from China, despite Beijing’s strict vetting of buyers to prevent diversion to US military uses, which has slowed licensing.

President Trump mentioned the deal during a White House event, hinting at a separate upcoming agreement that could open trade with India, describing it as a “very big” deal.

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