Following two days of intense negotiations in London, the United States and China announced a preliminary deal aimed at reducing escalating trade tensions. US President Donald Trump revealed that China agreed to supply rare earth metals and magnets to US companies, while the US would withdraw its threats to revoke visas for Chinese students, reports Reuters.
Trump stated on his platform Truth Social, “Our deal with China is done, subject to final approval from President Xi and me,” marking a step forward after a rapid escalation of tariffs earlier this year threatened global trade between the two largest economies.
The limited agreement builds on a truce from May, when both sides reduced tariffs and set a 90-day deadline to finalize a broader trade pact. However, the recent talks yielded only modest progress, raising questions in Washington about the effectiveness of current tariff policies.
President Trump also indicated plans to establish unilateral tariff rates with trading partners within weeks, with a July 9 deadline looming to reimpose higher tariffs globally. Treasury Secretary Scott Bessent said the US may extend the current tariff pause to maintain negotiations with key countries.
Though details remain scarce, the deal supports the framework agreed upon in early June phone discussions between Trump and Chinese President Xi Jinping, and subsequent Geneva meetings. China’s Vice Commerce Minister Li Chenggang confirmed progress toward implementing the leaders’ consensus, while US Commerce Secretary Howard Lutnick said talks had “cleaned up” the Geneva agreement.
The agreement focuses on rare earth minerals and magnets essential for manufacturing technologies such as smartphones and electric vehicles. US officials had raised concerns about China’s slow exports, while Beijing criticized US restrictions on semiconductor technologies and visa limits targeting Chinese students involved in advanced tech sectors.
Lutnick noted some “counter-measures” would be removed, but specifics were not disclosed. Bessent stressed that a comprehensive deal would require more time beyond the recent narrowly focused talks.
The ongoing trade war has seen tit-for-tat tariffs, with China particularly impacted by recent US import duties. The May truce lowered tariffs from historic highs but did not resolve non-tariff disputes, which have since strained relations.
Trump’s mention of US tariffs settling at 55% includes duties from his previous term, complicating market responses. Analysts, including Terry Haines of Pangaea Policy, described the deal as “limited in scope” and an “unfinished” step that does not signal an imminent comprehensive trade or geopolitical agreement.
As negotiations continue, both nations face pressure to balance political priorities with global trade stability, keeping the world attentive to the evolving US-China economic relationship.
Bd-pratidin English/ Jisan
