US and Chinese officials have agreed on a framework to implement the Geneva trade consensus, following two days of negotiations in London, as confirmed by both sides’ official statements.
The talks focused on resolving disputes over rare earth minerals and magnets, which are vital for industries like automotive, aerospace, and electronics. The Geneva agreement, reached in May, established a 90-day pause on most tariffs between the two countries.
Both sides had accused each other of violating this truce in recent weeks. US Commerce Secretary Howard Lutnick stated that the new framework aims to ensure the commitments made in Geneva are carried out.
Chinese International Trade Representative Li Chenggang echoed this, saying both delegations will present the plan to their leaders for approval.
China holds a near-monopoly on rare earth elements, controlling about 90% of global processing. These materials are essential for manufacturing electric vehicles, smartphones, and military systems.
China–US Trade Update
In May, China’s exports to the US dropped by 34.5%, the sharpest decline since the COVID-19 pandemic disrupted trade in early 2020. This fall reflects how trade tensions and export controls have squeezed supply chains and pressured both economies.
The US side sought to secure faster Chinese export licenses for rare earths, responding to concerns from American manufacturers about shortages. The framework also includes mutual tariff reductions.
According to official US sources, both countries agreed to lower tariffs by 115% from their recent highs, but each will keep a baseline 10% tariff for now. China will also suspend its 34% retaliatory tariff on US goods for 90 days.
President Trump and President Xi Jinping held a phone call last week, their first direct conversation since Trump’s inauguration. Both leaders agreed to push forward with the London talks.
The framework now awaits their final endorsement. If approved, it should restore the flow of critical materials and ease trade barriers that have cost businesses billions. This agreement matters because rare earths underpin modern industries and national security.
Supply disruptions can drive up prices and threaten jobs. The truce, if implemented, could stabilize markets and help both economies recover from months of uncertainty.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error