Catenaa, Wednesday, June 11, 2025- The United States and China have agreed in principle to a new trade framework aimed at resolving tensions over tariffs and rare earth exports, officials from both countries said Tuesday, following two days of high-level talks in London.
The preliminary deal now awaits approval from President Donald Trump and Chinese leader Xi Jinping, according to statements from US Commerce Secretary Howard Lutnick and China’s Vice Commerce Minister Li Chenggang.
The negotiations focused heavily on China’s restrictions on exports of rare earth minerals and magnets , considered critical components for smartphones, electric vehicles and military hardware, which Washington claims Beijing has been slow to release despite a previous truce in May.
Lutnick said the framework was designed to implement the “Geneva consensus,” a reference to the earlier Switzerland meeting that initiated a temporary tariff rollback.
That agreement lowered US tariffs on Chinese goods to 30% and cut Chinese levies to 10%, while setting a 90-day deadline to finalize a broader trade pact.
Both countries have since accused each other of violating non-tariff elements of the truce. The U.S. cited ongoing export delays, while China criticized Washington’s semiconductor curbs and visa denials for Chinese students.
Chinese officials said they have approved some applications for rare earth export licenses, though details remain unclear.
Trump told reporters on Friday that Xi had committed to resuming trade in rare earth materials, a key sticking point in the escalating trade standoff.
The outcome now hinges on presidential approval as both powers attempt to stabilize their fractured economic relationship.
