The United States and China have reached a formal understanding on a trade framework aimed at de-escalating tensions and rolling back tariffs, officials from both countries confirmed on Friday.
Following discussions in Geneva in May, both sides agreed to reduce their tit-for-tat tariffs and move toward resolving key trade disputes. China pledged to ease certain non-tariff measures, while the U.S. committed to lifting a series of restrictions previously imposed on Beijing.
Although U.S. officials had earlier accused China of stalling export license approvals—especially for rare earth elements critical to the tech and defense industries—recent talks in London helped both parties finalize a forward-looking framework.
A White House official told AFP on Thursday that the Trump administration and Chinese representatives had “agreed to an additional understanding for a framework to implement the Geneva agreement.” This followed President Donald Trump’s announcement at a White House event, where he claimed that a trade deal had been “just signed,” though he offered no specific details at the time.
China’s Ministry of Commerce later confirmed the agreement, expressing hope that both nations would “meet each other halfway.” The ministry added that China would “review and approve applications for the export of items under control that comply with legal requirements,” while the U.S. would “cancel a series of restrictive measures” in return.
The availability of rare earth minerals—essential for electric vehicles, data storage, and military equipment—was a major point of contention. China, which dominates the global supply of these materials, introduced new export licensing requirements in April, seen as retaliation for tariffs imposed by Washington.
Separately, the White House signaled that a July deadline for increased tariffs on multiple countries might be delayed, pending ongoing negotiations. President Trump had earlier introduced a sweeping 10% tariff across many U.S. trading partners, though implementation of some of the harsher measures was paused during diplomatic talks.
