June 11 (UPI) — The United States and China have agreed to a framework that would revive last month’s trade truce following two days of talks in London, negotiators announced Wednesday.
The framework and agreement, struck last month in Geneva, must be approved by U.S. President Donald Trump and Chinese President Xi Jinping before it can take effect.
“The two largest economies in the world have reached a handshake for a framework,” U.S. Commerce Secretary Howard Lutnick told reporters. “We have reached a framework to implement the Geneva consensus and the call between the two presidents.”
“The idea is we’re going to go back and speak to President Trump and make sure he approves it. They’re going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework,” Lutnick said.
China’s vice commerce minister told reporters the same information.
“The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting,” China’s vice commerce minister Li Chenggang said Wednesday.
While specifics of the deal were not revealed, Lutnick said both sides have agreed to roll back controls on exports that are vital to each country. Lutnick expressed optimism that that would include China’s exports of rare earth minerals and magnets to the United States.
“There were a number of measures the United States put on when those rare earths were not coming,” Lutnick added. “You should expect those to come off, sort of as President Trump said, ‘in a balanced way.'”
After their phone call last week cooled tensions amid the escalating trade dispute, Trump said Xi had agreed to restart exports of rare earth minerals and magnets, which are critical to American manufacturing.
Last month, the United States and China announced a 90-day pause on most of their tariffs. Under the agreement, the United States reduced its tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%.
The agreement was reached during trade negotiations in Geneva, where U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with their Chinese counterparts, including Vice Premier He Lifeng.
Asian stocks were mostly up after Wednesday’s announcement, as Mainland China’s CSI 300 index advanced 0.77% higher. U.S. stock futures were initially flat as investors waited for more information on the trade talks.
Bessent announced he would depart the negotiations, which could continue through Wednesday, if needed. Lutnick and Greer planned to remain in London.