China and the United States have reached a trade framework agreement following two days of intensive negotiations in London, marking a potential turning point in their prolonged economic confrontation. The talks, described by both sides as “in-depth and candid,” resulted in broad commitments on tariffs, critical mineral supply chains, and academic exchange.
The negotiations, held from June 9 to 10, marked the inaugural session of the newly established China-U.S. Economic and Trade Consultation Mechanism.
U.S. President Donald Trump announced the deal on Wednesday via his Truth Social platform, writing: “Our deal with China is done. Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities… We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent.”
According to a statement from Beijing, the meeting achieved progress in implementing the “important consensus” reached during the June 5 phone call between Chinese President Xi Jinping and U.S. President Donald Trump, and built on commitments outlined during prior discussions in Geneva last month.
High-Level Trade Talks in London
The Chinese delegation was led by Vice Premier He Lifeng, while the U.S. side included Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. Vice Premier He described the dialogue as being conducted under the “strategic guidance of the two heads of state,” reaffirming that the core of U.S.-China economic relations lies in “mutual benefit and win-win cooperation.”
He Lifeng emphasized, “Cooperation benefits both sides, while confrontation harms both,” underscoring Beijing’s commitment to principled negotiation while cautioning that it would not compromise on core interests.
Tariff Reductions and a fragile truce
The London meeting followed substantial progress made at a high-level meeting in Geneva in May, where both countries agreed to a sweeping reduction in tariffs. The United States lifted 91% of its additional tariffs on Chinese imports, with China reciprocating. Both parties also agreed to a 90-day suspension of punitive “reciprocal tariffs,” signaling an effort to stabilize the bilateral economic relationship.
President Trump praised the deal, declaring on social media that “our deal with China is done,” citing Chinese commitments to export rare earth minerals and a 55% total U.S. tariff rate on Chinese goods. However, China’s cautious response has raised questions. When pressed by Sky News, a Chinese government spokesperson confirmed China’s intent to honor its commitments but declined to detail the specifics, in contrast with Trump’s public assertions.
Rare Earths and strategic technologies
One of the most consequential outcomes of the talks was China’s agreement, in principle, to lift export restrictions on rare earth minerals—critical inputs for global defense and technology sectors. According to U.S. Commerce Secretary Howard Lutnick, the agreement “put meat on the bones” of the Geneva consensus and opens the door for reciprocal easing of U.S. export restrictions on certain goods.
However, Treasury Secretary Bessent told lawmakers that U.S. export controls on sensitive technologies—such as AI chips and advanced aircraft components—remain unchanged. “There is no quid pro quo in terms of chips for rare earths,” Bessent clarified before a Senate subcommittee.
Market Response and Trade Flow
The policy shift had swift and tangible effects. Container booking data from Vizion, a global logistics tracking provider, showed a nearly 300% surge in shipments from China to the U.S. In Shenzhen’s Yantian Port—a key export hub to the U.S.—daily container volumes rose over 60%, signaling a rapid market reaction to the easing of trade restrictions.
Michael Hart, President of the American Chamber of Commerce in China, commented, “The tariff war is a reality check, proving that China remains both an essential market and a critical supplier for the U.S.”
Despite headline announcements, significant ambiguity remains over the full scope and enforceability of the trade framework. Sky News and Reuters both noted that while the U.S. has detailed specific tariff structures and commodity commitments, Beijing has remained circumspect.
Former U.S. trade negotiator Wendy Cutler expressed concern that critical time had been lost since the Geneva meeting. “Now, only sixty days remain to address issues of concern, including unfair trade practices, excess capacity, transshipment and fentanyl,” she told the Asia Society Policy Institute.
With both parties confirming that the London agreement constitutes a framework subject to final approval by Presidents Xi and Trump, China’s international trade representative, Li Chenggang, expressed hope that the consensus reached would “strengthen trust and promote the steady and healthy development of economic and trade ties.”
Professor Sun Taiyi of Christopher Newport University noted that the London talks allowed both countries to “clarify their positions” and demonstrated a mutual understanding that sustained cooperation serves their national interests far better than prolonged confrontation.