London — After two days of high-stakes negotiations in London, the United States and China have agreed in principle to a framework aimed at easing ongoing trade tensions between the two powers.
The tentative deal, confirmed late Tuesday, now awaits approval from Presidents Donald Trump and Xi Jinping.
“We’ve reached a framework to implement what was agreed during the recent phone call and the earlier Geneva talks,” said US Commerce Secretary Howard Lutnick during a press briefing. “Once the presidents approve it, we will move forward.”
His Chinese counterpart, Vice Commerce Minister Li Chenggang, echoed the sentiment. “The two sides have, in principle, reached a framework to implement the consensus reached on 5 June,” he said.
The talks focused heavily on the trade in rare earth minerals essential materials for electronics, electric vehicles, and defence technology which have become a strategic fault line between the two countries.
Rare Earths at the Centre
China controls the bulk of the world’s rare earth supply. Its decisions on exports carry global consequences, particularly for countries depending on high-tech manufacturing.
The United States had accused Beijing of dragging its feet on releasing these critical materials despite a truce reached in May. That agreement, hammered out in Switzerland, brought down tariffs temporarily and set a 90-day window for deeper negotiations.
The latest round in London was meant to build on that fragile reset.
“China’s export restrictions have been a sticking point,” said Jamieson Greer, the US Trade Representative, on Tuesday. “Without access to rare earths, our manufacturers face real delays.”
In response, China pointed the finger back at Washington, accusing the US of breaking non-tariff promises. These included denying sales of advanced chip software and cancelling student visas.
“We have respected the agreement,” a Chinese official said earlier in the week. “Yet the United States has taken steps that directly undermine it.”
From Tariff War to Talking Points
The economic relationship between Washington and Beijing has endured years of strain. Earlier this year, President Trump sharply raised tariffs on Chinese imports, reaching a peak of 145 percent by April. China responded in kind with its own trade barriers.
In May, that spiral paused. Tariffs fell 30 percent on Chinese goods, 10 percent on US imports and China agreed to ease restrictions on mineral exports. Still, accusations of backtracking emerged from both capitals.
“There’s clearly a deep trust deficit,” said Dr. Lena Tsai, an economist at the University of Hong Kong. “Neither side believes the other is sticking to the script. That’s why this framework is so crucial it could be the blueprint for real enforcement.”
A Path Forward, But Uncertain
The new framework remains broad and largely unwritten. It is expected to include mutual tariff suspensions, clearer timelines for rare earth shipments, and a commitment to avoid interfering in each other’s access to critical technology.
Trump, speaking briefly on Friday, described his call with Xi as a “very good talk” and said China had agreed to restart the flow of rare earths.
Both governments are under pressure Trump, from American industry fearing supply disruptions, and Xi, from a slowing economy and rising diplomatic tensions in Asia.
Whether this framework holds remains to be seen. Much depends on whether Trump and Xi endorse it in the coming days.
“We’ve seen deals fall apart before,” said Dr. Tsai. “But this time, both sides are feeling the cost of failure.”
If approved, the agreement could mark a turning point. If not, the world’s two largest economies may be heading for another turbulent chapter.
