The United States and China have finalized the terms of a trade framework brokered by officials in London and Geneva over the course of recent weeks.
President Donald Trump on Thursday announced that Beijing had signed the agreement, following comments from U.S. Commerce Secretary Howard Lutnick that the deal was “signed and sealed” earlier in the week. Neither official provided more details, though it’s likely that access to China’s rare earth minerals, including magnets, is a key part of the arrangement. Appearing on Bloomberg TV Thursday evening, Lutnick said that the country would “deliver rare earths to us” and that the U.S. would in turn “take down our countermeasures.”
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A White House official who was not authorized to speak publicly on the matter told NPR that this week’s agreement centered on mineral accessibility for the U.S. and did not pertain to tariff rates.
The Chinese Ministry of Commerce released a statement confirming that a consensus had been reached between the two nations.
“After the London talks, the teams of China and the United States maintained close communication. Recently, with approval, the two sides further confirmed the details of the framework,” the Ministry wrote in a statement. “China will review and approve the export applications of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly.”
“It is hoped that the United States and China will meet each other halfway, follow the important consensus and requirements reached by the two heads of state on June 5, further play the role of the China-U.S. economic and trade consultation mechanism, continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the healthy, stable and sustainable development of China-U.S. economic and trade relations.”
On June 5, cabinet members including Lutnick, U.S. Trade Representative Ambassador Jamieson Greer and Treasury Secretary Scott Bessent traveled to London to revive conversations with Beijing officials following the breakdown of an earlier agreement brokered in Geneva during May which resulted in a trade truce wherein the U.S. agreed to limit duties on China-made goods to 30 percent (much lower than the triple-digit duties threatened in the spring), and China agreed to lower its duties on American goods to 10 percent.
Following the London meeting, Trump Truthed that a higher duty rate of 55 percent would be levied on China-made products, and officials said China agreed to lowering export barriers on rare earth minerals.
Lutnick also this week said that 10 trade deals with other major U.S. trading partners were imminent. Bessent on Friday told Fox Business that he believes “we could have trade wrapped up by Labor Day,” a departure from the July 9 deadline the White House originally imposed when Trump deferred his April “Liberation Day” tariffs for 90 days.
On Friday, however, Trump appeared to clarify that Canada would not be among the administration’s trade priorities.
In a missive on Truth Social, the president wrote that Canada—“a very difficult Country to TRADE with”—would be implementing a digital services tax on U.S. tech companies, a move that he called “a direct and blatant attack on our Country.”
“They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”
In May, Canada effectively canceled its retaliatory duties on the U.S. in an effort to cool trade tensions.
