U.S. and China reach new trade agreement

Speaking to reporters — including a Reuters correspondent — aboard Air Force One at the end of his Asian tour, Trump described the deal as the result of an “extraordinary” conversation with the Chinese president. He emphasized that “this agreement benefits both nations and could open a new path in U.S.–China economic relations.”

According to Trump, the accord is part of a broader framework finalized by the two nations’ negotiating teams last Sunday. The framework aims to prevent the imposition of a 100% tariff on Chinese goods while China, in return, suspends its export restrictions on rare earth elements.

Trump added that this new understanding, alongside recent trade agreements Washington has concluded with South Korea, Japan, and Southeast Asian countries, signals America’s renewed commitment to constructive economic engagement with the Asia–Pacific region.

Analysts believe the new U.S.–China deal could ease tensions in the long-running trade war between the world’s two largest economies — a conflict that in recent years has had widespread repercussions on global markets, supply chains, and international commerce.

Following the announcement of the agreement, the Shanghai Composite Index rose more than 2.3% in morning trading, while Hong Kong’s Hang Seng Index gained 1.8%. The Chinese yuan also strengthened against the U.S. dollar, reaching its highest level in three months.

Market analysts suggest that easing trade tensions between Washington and Beijing could improve China’s export growth outlook and stabilize commodity markets. Meanwhile, Wall Street indexes also rose at the start of trading, with shares in agricultural and technology firms — expected to benefit from the agreement — posting notable gains.