London— Top officials from the United States and China have reached a preliminary framework to revive a trade truce between the two nations, following two days of intense negotiations.
The agreement aims to reinstate terms discussed last month in Switzerland, including mutual tariff reductions and the resumption of Chinese exports of critical minerals. The plan now awaits final approval from U.S. President Donald Trump and Chinese President Xi Jinping.
U.S. Commerce Secretary Howard Lutnick confirmed the breakthrough, stating that China is expected to lift restrictions on rare earth minerals and magnets, which are vital to manufacturing smartphones, electronics, and electric vehicles. In return, the U.S. would roll back certain trade measures imposed in response to earlier export curbs.
“You should expect those [U.S. restrictions] to come off—in a balanced way, as President Trump described it,” Lutnick told reporters.
China holds a near-monopoly on rare earth exports and has previously used that leverage in its trade dispute with Washington. Meanwhile, the U.S. has limited China’s access to high-tech American goods, including semiconductors and AI-related technologies.
Lutnick said the two sides had agreed to move forward with implementing the so-called “Geneva consensus,” first reached at last month’s meeting and reaffirmed during a phone call between Trump and Xi on June 5.
“The framework is in place. Once the presidents sign off, implementation will begin,” Lutnick said.
China’s Vice Commerce Minister Li Chenggang echoed the sentiment, stating both countries have “in principle” agreed on the framework outlined during the recent discussions.
The deal marks a cautious step toward de-escalating ongoing trade tensions that have impacted global markets and supply chains. (Source: IANS)
