The United States and China have reached a tentative trade agreement following two days of negotiations in London, officials from both countries confirmed on Wednesday.
Chinese trade envoy Li Chenggang announced the development during a press briefing, saying both delegations had settled on a basic structure for enacting the consensus previously reached by President Donald Trump and Chinese leader Xi Jinping during recent discussions.
“This framework reflects the understanding achieved during the June 5 call and last month’s Geneva meetings,” Li stated, according to Chinese state broadcaster CGTN.
U.S. Commerce Secretary Howard Lutnick, speaking separately to reporters, said the framework would be presented to both President Trump and President Xi for final approval. “The idea is we’ll now consult our leaders. If they sign off, we’ll move forward with implementation,” Lutnick said, according to Reuters.
The agreement follows recent tensions sparked after an initially positive deal in Geneva. That May agreement had included a temporary reduction in tariffs for 90 days, but optimism quickly faded due to disputes over China’s export controls on rare earth materials and limits on its access to American semiconductor technology.
Lutnick confirmed that China’s restrictions on exporting rare earths and magnets to the U.S. would be addressed as a key part of the new framework. In turn, the U.S. may lift certain trade barriers it imposed in response to those limits. “You should expect those to come off,” Lutnick said, adding that any changes would be reciprocal, in line with President Trump’s guidance.
Both sides are expected to finalize the details pending approval from their respective heads of state.
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