The United States and China have reached an agreement in principle on a framework to advance their trade relations.
On June 10, 2025, the two economic powerhouse concluded negotiations in London focused on implementing the consensus from a prior Geneva meeting and phone call between the two nations’ leaders.
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The framework aims to address China’s export restrictions on earth minerals and which is critical for industries like automotive and semiconductors.
China also aims to take down some of the large advantage that the U.S. has when it comes to export controls.
The earlier agreement reached in Geneva reduced U.S. tariffs on Chinese goods from 145% to 30% and Chinese tariffs on U.S. goods from 125% to 10% for a 90-day period which is still effective currently.
Both sides agreed to continue negotiations to avoid economic decoupling and address issues like the U.S. trade deficit, which was $295.4 billion in 2024.
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The framework awaits final approval from Presidents Trump and Xi. However, sources revealed it does not cover exemptions for e-commerce firms.
It will also not be part of unresolved issues, such as China’s industrial subsidies and non-market practices which may believes could complicate future talks.