US, China reach framework deal to ease rare-earth export curbs and extend tariff truce

High-level US–China trade negotiations in London have yielded a framework agreement aimed at reviving the nearly expired Geneva truce on tariffs. The accord addresses key sticking points, including China’s restrictions on rare-earth mineral exports and reciprocal US export controls.

Over two days of intensive discussions, US Commerce Secretary Howard Lutnick announced the deal "puts meat on the bones" of the Geneva understanding, specifying two main outcomes: China will lift export curbs on rare-earths and magnets crucial to tech and electric vehicles, and the US will ease some export restrictions, notably on semiconductors and related goods.

Chinese Vice Commerce Minister Li Chenggang confirmed that both nations have reached an “in-principle” accord aligned with presidential discussions on June 5 and the earlier Geneva agreement.

The agreement is now subject to final approvals from Presidents Donald Trump and Xi Jinping, with implementation expected following their sign-off.

Markets responded cautiously but optimistically: US technology stocks, including chipmakers like Qualcomm and AMD, saw modest gains following news of eased trade tensions.

Asian indexes, including Chinese equities, also rebounded on renewed investor confidence.

The rare-earth deal tackles a strategic vulnerability in US manufacturing—but lacks detail on the timeline and scope of rollbacks.

With the original Geneva tariff pause set to expire in August, negotiators now face a 90-day window to finalize a comprehensive agreement before retaliatory tariffs automatically resume.

Analysts warn that preserving the truce depends on transparency and follow-through, as both nations accuse each other of reneging on commitments—China on rare-earth licensing delays, and the US on maintaining semiconductor export controls.

The London framework marks a tentative thaw in the US–China trade conflict. The next steps will hinge on presidential sign-offs and detailed policy reversals amid ongoing geopolitical scrutiny.