US President Donald Trump announced a tentative agreement concluding talks aimed at easing US-China trade tensions. The deal, pending final approval from both Trump and President Xi Jinping, includes China’s commitment to increase the supply of rare earth minerals and magnets to US companies, in exchange for the US scaling back visa restrictions on Chinese students.
Trump publicized the agreement via his Truth Social platform, following two days of intense negotiations in London. These talks aimed to resolve conflicts that had arisen since a May truce, which temporarily halted a trade war that severely impacted global commerce.
The limited scope of the announcement, however, raises questions regarding the efficacy of the White House’s tariff strategy in achieving comprehensive trade deals. Separately, US Treasury Secretary Scott Bessent indicated an extension of the pause on certain tariffs to allow ongoing negotiations with other nations.
Details remain scarce, but the agreement reportedly builds upon the framework established during a June phone call between Trump and Xi Jinping. It does not, according to officials, significantly alter the terms of the May truce, which lowered but didn’t eliminate tariffs imposed by both sides since the escalation of the trade war.
Chinese Vice Commerce Minister Li Chenggang confirmed that both sides had, in principle, reached a framework for implementing the Geneva consensus. US Commerce Secretary Howard Lutnick echoed this sentiment, emphasizing the need for presidential approval before implementation. He described the talks as clarifying the Geneva agreement, expressing optimism about the progress.
White House Press Secretary Karoline Leavitt stated that President Trump is reviewing the agreement’s details but expressed his initial approval. The London negotiations were spurred by US concerns over China’s slow release of rare earth minerals and magnets, crucial for numerous industries. Simultaneously, China criticized US restrictions on semiconductor and technology exports, as well as the Trump administration’s plans to limit student visas.
Lutnick indicated the US agreed to remove certain countermeasures, although specifics remain undisclosed. Treasury Secretary Bessent emphasized the limited scope of the recent talks, suggesting a more comprehensive agreement will require a longer timeframe. He also suggested the possibility of extending deadlines for trade talks with other countries based on the progress of negotiations.
Trump’s earlier imposition of sweeping tariffs on various countries, particularly impacting China, prompted retaliatory tariffs from Beijing. A May truce in Switzerland temporarily eased tensions, lowering tariffs and promising improved access to critical minerals. However, subsequent claims of broken pledges by both sides necessitated the recent London talks.
Trump’s social media post mentioned a 55% tariff on Chinese goods, a figure that officials clarified included tariffs implemented during his first term. Market reaction to the deal was muted, with analysts like Terry Haines of Pangaea Policy characterizing it as possessing “very limited scope and unfinished status,” suggesting limited progress towards a broader trade agreement or geopolitical rapprochement.