In an interview with CNBC, the U.S. Trade Representative said China has committed to supplying rare earth materials needed by U.S. manufacturers.
- Greer said Washington and Beijing have reached agreements covering agricultural products, medical devices, consumer goods and rare earth supplies.
- According to him, the U.S. trade deficit with China is on track to fall to about $140 billion this year, down from $300 billion when President Donald Trump began his current term.
- He added that national-security measures, including restrictions on advanced semiconductor exports, remain separate from the trade negotiations.
U.S. Trade Representative Jamieson Greer said Friday that the U.S. and China are now in a “managed trade situation” with Washington’s goods trade deficit with Beijing down by nearly 40%.
“Our view with the Chinese is we have extensions from time to time,” Greer said in an interview with CNBC. “At the same time, for us, we view these periods as compliance periods.”
Greer’s comments came during President Donald Trump’s meeting with Chinese President Xi Jinping in Washington, with the two countries seeking to stabilize trade ties while keeping more sensitive national-security issues separate. The Trump administration has said it is focused on monitoring existing commitments, expanding market access for U.S. producers and managing trade in non-sensitive goods.
Greer said China has committed to buying more U.S. agricultural products and supplying the rare earth materials needed by American manufacturers. He added that the U.S. is monitoring Beijing’s compliance with those commitments.
U.S. equities gained in morning trade on Friday. The SPDR S&P 500 ETF (SPY) was up 0.29%, the SPDR Dow Jones Industrial Average ETF (DIA) gained 0.32%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.45% higher. Retail sentiment around SPY on Stocktwits shifted to ‘extremely bullish’ from ‘bullish’ territory over the past day.
US Trade Deficit With China Falls To $140B
Greer said the U.S. trade deficit with China was about $300 billion when President Donald Trump began his current term and is now on track to reach roughly $140 billion this year.
“The trade deficit in goods with China is down by 40%,” Greer said, adding that the overall U.S. goods trade deficit is down about 10% year over year.
Greer attributed the shift partly to companies diversifying their supply chains away from China following higher U.S. tariffs. He said some trade has instead moved to other countries, including Mexico and European markets.
The U.S. has tariffs on Chinese imports ranging from 25% to 45%, with some products facing tariffs as high as 100%, according to Greer. He added that the U.S. is also maintaining a 100% tariff on Chinese electric vehicles, which has encouraged Chinese automakers to target markets in Europe and elsewhere.
More Details On China Trade Deal Expected Monday
Greer said Washington and Beijing have made progress in recent negotiations, with additional details expected to be released Monday. The discussions focus on what he described as “pure trade issues,” including U.S. agricultural exports, medical devices, Chinese consumer goods, and rare earth supplies.
“We’ve actually reached agreement with the Chinese on a number of these things,” Greer said.
He said national-security issues, including U.S. restrictions on advanced semiconductor exports, are being kept separate from the trade negotiations. The U.S. has maintained and expanded controls on some advanced semiconductor technology, which Greer called the “crown jewels” of American technology.
US Talks With Mexico Over Growing Trade Deficit
Greer said the administration is also focused on trade imbalances with countries beyond China.
While the U.S. trade deficit with China has fallen, he acknowledged that the deficit with Mexico has been increasing. He said Washington is in talks with Mexico over the issue, particularly as companies shift electronics and other supply chains into Mexico and then ship products into the U.S.
On Canada, Greer said Trump is “comfortable where we are” and that there is no urgency on Washington’s side to reach a new trade deal. He said the U.S. continues to receive oil, gas and potash from Canada while agricultural trade continues in both directions.
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