US-China Strike Framework Deal to Ease Export Curbs, Maintain Tariff Truce

After tense talks in London, both sides agree to resolve rare earth restrictions and keep punitive tariffs at bay — but long-term trade differences remain unresolved.

London, June 11, 2025 —
In a significant step toward de-escalating trade tensions, the United States and China have agreed on a framework to revive their fragile tariff truce and resolve disputes over export curbs on critical materials. The announcement followed two days of high-level negotiations in London, with officials from both countries signaling cautious optimism.

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The framework builds on a Geneva agreement from last month, which had begun to unravel over China’s restrictions on rare earth mineral exports — vital components for electronics and electric vehicles. In response to those curbs, the Trump administration had imposed export controls on semiconductor design software, aviation equipment, and chemicals.

🔁 Key Outcomes of the Deal:

China’s rare earth export curbs will be lifted.
Some US export restrictions will be rolled back in a “balanced” manner, pending final approval.
Tariffs will remain suspended until August 10, giving both sides time to negotiate a more comprehensive deal.
Presidents Trump and Xi Jinping must now approve the framework before it is implemented.

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🗣️ Statements from Negotiators

US Commerce Secretary Howard Lutnick said:

“We have reached a framework to implement the Geneva consensus and the call between the two presidents. The idea is to secure their approval next.”

China’s Vice Commerce Minister Li Chenggang echoed the sentiment:

“The two sides have, in principle, reached a framework for implementing the consensus from the June 5 phone call and Geneva talks.”

However, observers remain cautious. Josh Lipsky of the Atlantic Council noted,

“They are back to square one — but that’s better than square zero.”

📈 Tariff Timelines & Risks

Without a broader agreement by August 10, suspended tariffs will snap back sharply:

US tariffs: from ~30% to 145%
Chinese tariffs: from 10% to 125%

The latest data already shows strain: China’s exports to the US fell by 34.5% in May, the steepest decline since the COVID-19 pandemic.

🔍 Market & Global Reactions

MSCI Asia-Pacific index rose 0.2% on Wednesday.
Analysts urge caution, as details on exact trade volumes and relief timelines remain unclear.
Gold prices dipped, and the US dollar held steady amid cautious optimism.

Chris Weston, head of research at Pepperstone, said:

“The headlines are constructive, but the devil lies in the details. Investors have seen this movie before.”

⚙️ Strategic Stakes

Rare Earths: China controls the majority of global production. These materials are critical for electric vehicles, military hardware, and electronics.
US Tech Exports: The rollback of curbs on semiconductors and aviation parts is seen as a concession to China, with possible impacts on global supply chains.

The World Bank has already revised its global growth forecast for 2025 downward to 2.3%, citing “heightened trade uncertainty” as a major drag.

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📞 Presidential Diplomacy

The London talks gained traction after a rare direct call between President Trump and President Xi last week, which helped align directives with the Geneva framework.

Tags:

US-China trade deal, Trump tariffs, rare earth minerals, export restrictions, trade truce, Howard Lutnick, Xi Jinping, global supply chains, semiconductor trade, US commerce, China exports

News Desk