President Donald Trump has announced that the United States and China have reached a framework agreement to ease tensions over trade and rare earth mineral supply, following two days of high-level negotiations in London.
In a post on Truth Social, Trump wrote, “Our deal with China is done, subject to final approval from President Xi and me,” adding, “RELATIONSHIP IS EXCELLENT!” He emphasized that China would resume faster exports of rare earth minerals and magnets to American companies, while the U.S. would withdraw visa restrictions targeting Chinese students.
Though described by Trump as a “deal,” U.S. officials clarified it is a framework agreement meant to implement consensus from earlier discussions, notably the Geneva truce in May. That agreement had paused a steep tariff escalation and laid out a 90-day negotiation window.
“The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on 5 June and the consensus reached at the Geneva meeting,” said China’s Vice Commerce Minister Li Chenggang.
Commerce Secretary Howard Lutnick confirmed that the London talks had “cleaned up” the previous agreement and said, “We’re totally on the right track. Things feel really good.” Lutnick added that the U.S. had agreed to remove some countermeasures, although no specific details were disclosed.
Trump also reiterated on social media that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.” A White House official later explained the 55% included tariffs from Trump’s first term and was not an increase over the existing 30% rate established in May.
Despite Trump’s optimism, the specifics remain unclear. Chinese officials and state media have only confirmed an agreement “in principle,” often diplomatic language used when full terms have yet to be settled.
The talks came after Beijing’s licensing requirements had delayed rare earth exports, a move that triggered concerns in Washington due to the minerals’ strategic importance in technology and defense manufacturing.
The U.S. had responded with new restrictions on the export of certain technologies to China, along with a proposed ban on Chinese students, which the framework deal would reverse if finalized.
“This would be a great WIN for both countries!!!” Trump wrote in a follow-up post.
Trade analysts remain cautious. Wendy Cutler, vice president of the Asia Society, noted, “The United States appears to have paid a heavy price” by placing export controls on the negotiating table — a move historically avoided due to national security concerns.
Veronique de Rugy, a researcher at George Mason University, dismissed the London outcome as “a handshake deal… It can change at any time.”
For now, the framework appears to be a step toward stabilizing economic ties, with both sides agreeing to maintain contact and potentially meet again before the current 90-day pause expires in August. However, whether it leads to a more comprehensive trade agreement remains uncertain.