Trump Announces Completion of US-China Trade Deal Framework

US President Donald Trump has announced the conclusion of a new trade agreement framework with China, following high-level meetings held in London. The proposed deal includes Chinese commitments to provide rare earth minerals critical to US manufacturing, alongside allowances for Chinese students to study at American universities.

Trump stated the agreement is contingent upon final approval from himself and Chinese President Xi Jinping, but described it as “done in principle.”

The deal aims to de-escalate ongoing trade tensions between the two largest economies, tensions that had reignited even after a temporary truce was declared last month. That ceasefire, reached during talks in Switzerland, had reduced tariffs on both sides and set a 90-day deadline to finalize a longer-term arrangement.

Under the proposed terms, China will supply rare earth materials—including vital magnets for electronics and electric vehicles—while the US will relax certain restrictions, particularly related to education and technology exchange.

The US has previously criticized China for limiting exports of rare earth elements, while Beijing objected to US bans on semiconductor sales and visa cancellations for Chinese nationals.

US Commerce Secretary Howard Lutnick emphasized the deal would resolve outstanding trade restrictions, especially on rare earths, and that it marks a significant step forward in the implementation of previous agreements.

Negotiations this week were seen as a follow-up to a phone call between the two leaders on 5 June, during which they reportedly reaffirmed commitments made during prior Geneva discussions.

Despite progress, some US officials remain skeptical. Trade Representative Jamieson Greer highlighted concerns that China has yet to fully lift restrictions on magnet exports. Meanwhile, Beijing has accused the US of violating earlier terms, citing continued technology bans and visa issues.

The recent London talks have raised hopes that both sides will now return to a more cooperative phase in trade relations. Trump concluded by stating that he expects Xi to endorse the agreement and reaffirmed the importance of restoring balanced economic ties between the two nations.