Let’s Make a Deal: US and China Reach Tentative Trade Agreement

The United States and China reached a provisional agreement Wednesday to implement a trade truce after two days of negotiations in London, signaling a potential de-escalation of tensions between the world’s two largest economies, CNN reported. 

US and Chinese negotiators confirmed the deal “in principle,” noting that it now awaits final approval from the leaders of both countries before it can take effect. 

While the specifics remain undisclosed, officials said the deal includes the easing of export controls and the lifting of restrictions on critical goods. 

US President Donald Trump posted on social media that the deal was “done,” pending Chinese President Xi Jinping’s approval. He added that China would begin supplying “full magnets, and any necessary rare earths,” while the US would permit Chinese students to study at American universities and relax certain tech-related restrictions. 

Trump also claimed the US secured a 55 percent tariff advantage over China’s 10 percent, calling the bilateral relationship “excellent,” according to the BBC. 

The agreement builds on commitments made during last month’s talks in Geneva, Switzerland, and follows a recent phone call between Trump and Xi that aimed to reduce tensions. 

At the Geneva meeting, both sides agreed to a 90-day window to negotiate a broader deal, lower tariffs – 30 percent for the US, 10 percent for China – and resume key exports while lifting certain trade barriers. 

However, tensions resurfaced after both countries accused each other of violating non-tariff pledges, leading to new restrictions on chip design software, AI technologies, and rare earth exports. 

Export controls remain a central issue. Beijing, which dominates global rare earth supplies, imposed strict licensing rules in April that drastically reduced overseas shipments. In response, Washington tightened semiconductor restrictions and threatened to revoke visas for Chinese students. 

The standoff has already impacted trade: Chinese customs data showed a 34 percent drop in exports to the US in May. 

Despite the apparent breakthrough, analysts and officials remain cautious. The deal lacks detailed commitments and hinges on high-level political approval.