US, China Reach Deal to Ease Export Curbs, Keep Tariff Truce Alive/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ After high-level meetings in London, the U.S. and China have agreed on a framework to resume stalled trade negotiations. The talks focused on rare earth exports and technology access amid mounting economic tensions. With just 60 days left in a truce, both sides aim to resolve disputes and avoid deeper trade fallout.
U.S.-China Trade Deal Framework Quick Looks
- Framework agreement reached after two-day London talks
- Focused on technology exports, rare earth minerals, and semiconductor access
- U.S. Commerce Secretary Howard Lutnick and Chinese Vice Premier He Lifeng led delegations
- Framework revives progress from Geneva trade truce in May
- Rare earth export licenses and U.S. tech restrictions at core of talks
- Asian markets rose on news of deal
- World Bank downgraded global growth outlook due to trade barriers
- U.S. to ease export measures after China approves mineral licenses
- Only 60 days remain to finalize a comprehensive deal
- Appeals court allows U.S. to continue collecting tariffs pending legal challenge
Deep Look: U.S. and China Agree on Framework to Revive Trade Talks
LONDON — After months of escalated tensions and missed opportunities, the United States and China have agreed on a framework to restart trade negotiations, offering a glimmer of hope for resolving a series of disputes that had threatened to derail their fragile truce.
The breakthrough came after two days of talks in London, where senior delegations led by U.S. Commerce Secretary Howard Lutnick and Chinese Vice Premier He Lifeng met at Lancaster House, a historic mansion near Buckingham Palace. The discussions focused on the most contentious issues still unresolved from a 90-day tariff suspension agreed in Geneva last month.
“We had to clear the air,” Lutnick told reporters. “Now we can move forward.”
Addressing the Toughest Issues First
The talks honed in on mineral exports and technology access, two flashpoints in a broader trade conflict that has seen tariffs soar above 100% on many goods. The U.S. has placed restrictions on advanced semiconductors and AI-enabling tech, while China dominates rare earth mineral production, vital for electric vehicles and defense systems.
Li Chenggang, China’s Vice Minister of Commerce, confirmed via Xinhua News Agency that both nations had agreed “in principle” on a roadmap for implementing consensus points reached in earlier talks and in last week’s call between President Donald Trump and President Xi Jinping.
Details of the framework remain limited, but Lutnick emphasized that resolving the rare earth dispute is “fundamental” and said the U.S. is prepared to roll back some export enforcement actions once China begins issuing mineral export licenses.
Economic Pressure from All Sides
The agreement comes against a backdrop of economic warning signs. On Tuesday, the World Bank cut its global growth forecast, citing a surge in trade barriers, including those linked to U.S.-China tensions.
The Geneva agreement had temporarily paused the tariff escalation, but analysts like Wendy Cutler, a former U.S. trade negotiator now at the Asia Society Policy Institute, said time is running short.
“Thirty of the 90 days were lost,” she noted. “Now just 60 days remain to tackle serious concerns — from excess industrial capacity to fentanyl production.”
Adding pressure, a U.S. federal appeals court ruled Tuesday that the government may continue collecting tariffs under Trump’s trade authority while litigation over their legality plays out. This decision allows Trump to maintain economic leverage over both China and other global trading partners.
What’s on the Table?
Among the key components of the emerging trade framework:
- Mineral Export Licenses: China hinted it will expedite licenses for rare earth exports.
- Semiconductor Restrictions: Beijing wants the U.S. to drop limits on advanced chip technology exports.
- Tariff Collection Continuation: U.S. courts allow ongoing tariff revenue collection during appeal.
- Tech Exchange Talks: China has reportedly renewed calls for increased access to American technologies.
- Export Enforcement Reduction: U.S. hinted it may reduce trade controls if China acts in good faith.
Cutler warned, however, that any U.S. concessions on export controls could set a precedent. “It opens the door for China to push this into all future negotiations,” she said.
Political Backdrop and Future Talks
President Trump, who recently said he wants to “open up China” to American goods, indicated that trade openness will be the determining factor for any final agreement.
“If we don’t open up China, maybe we won’t do anything,” Trump said from the White House. “But we want to open up China.”
So far, there is no formal date set for the next round of talks, though both sides signaled urgency. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer were also present at the London talks, indicating high-level commitment.
Asian markets responded positively on Wednesday, with indices across Tokyo, Shanghai, and Hong Kong posting gains amid renewed investor optimism.
As negotiations move forward, attention will turn to how both countries balance economic diplomacy with domestic political pressures and international expectations.
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