US-China Framework Agreement: magnets and rare minerals at the centre of trade negotiations
Trump and Xi Jinping confirm understanding on tariffs and trade tariffs, with focus on strategic materials. Temporary suspension of reciprocal tariffs pending final approval
3' min read
3' min read
The Trump administration scores a couple of blows on the trade front. In London, top-level delegations from the United States and China announced that they had reached a framework agreement on restoring the truce that had seen the two countries suspend most of their respective tariffs. Meanwhile, at home he wrested from the Court of Appeals a two-month extension, until 31 July, of the suspension of so-called reciprocal tariffs against dozens of countries and which had been rejected as illegal in the first instance by a special federal trade court.
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Agreement in principle pending the OK from Trump and Xi
The agreement was confirmed in a post by the US president himself on social Truth, where he wrote: 'Our agreement with China has been concluded, subject to final approval by President Xi and myself. China will supply all the necessary magnets and rare minerals. Likewise, we will provide China with what has been agreed, including visas to Chinese students using our colleges and universities (which I have always liked!)'. In the understanding reached in London, tariffs will remain at the same level as in Geneva in recent weeks, when the US pledged to reduce tariffs on made in China to 30% and China to 10%.
On the first point, the delegations said that the pact signed in Geneva was in fact back in force, after both had denounced violations. Trade Secretary Howard Lutnick spoke of an understanding sealed by a 'handshake'. , which will now be taken to President Donald Trump and President Xin Jinping. A senior Beijing official in London together with the chief negotiator, Vice Premier He Lifeng, confirmed that the parties had reached 'an agreement in principle'.
Before Trump's intervention on Truth, no details on the content of the agreement had emerged. Among the most difficult issues of substance that had caused the impasse were US access to critical Chinese rare earths and minerals and Beijing's access to semiconductors for US-made artificial intelligence.
