The United States and China have reached a tentative agreement to ease escalating trade tensions, with both sides announcing a framework that now awaits approval from Presidents Donald Trump and Xi Jinping.
Following two days of high-level negotiations in London, U.S. Commerce Secretary Howard Lutnick and China’s Vice Commerce Minister Li Chenggang confirmed that the two economic superpowers had “in principle” agreed on a plan to implement the so-called Geneva consensus—an earlier commitment to stabilize trade relations.
A key outcome of the talks is a proposed resolution to long-standing disputes over the trade of rare earth minerals and magnets, which are vital components in modern technologies including smartphones, electric vehicles, and advanced military systems. The U.S. has accused China of withholding exports of these critical resources, while Beijing has criticized Washington’s restrictions on Chinese access to U.S. goods, particularly semiconductors and artificial intelligence-related technologies.
“We have reached a framework to implement the Geneva consensus,” Lutnick said at a press briefing. “Once the presidents approve it, we will then seek to implement it.”
China’s Li echoed the sentiment, stating that the agreement builds on a June 5 phone call between Trump and Xi, which both sides described as constructive.
The latest negotiations follow a temporary truce on tariffs announced last month, which quickly came under strain as both countries accused each other of backtracking on commitments.
If approved by the two leaders, the framework could mark a significant step toward stabilizing a trade relationship that has endured years of tensions, tariffs, and retaliatory measures.
Written By Rodney Mbua
