The United States and China have reached a tentative deal aimed at easing months of economic tensions, with US President Donald Trump announcing the agreement on his social media platform Truth Social.
The deal, he said, is “done” but still requires final approval from Chinese President Xi Jinping.
Under the agreement, China has pledged to resume the supply of vital rare earth metals and industrial magnets to US companies — a move seen as crucial for the production of smartphones, electric vehicles, and other key technologies. In exchange, the US will backtrack on recent threats to revoke student visas for Chinese nationals studying in American universities.
The announcement followed two days of intensive talks in London involving top officials from both countries. It marks the first substantive progress since a temporary truce was agreed in Geneva last month to halt a spiralling trade war that had seen tariffs soar and diplomatic relations fray.
“Our deal with China is done, subject to final approval from President Xi and me,” Trump wrote on Thursday. Speaking to reporters later, he added that “things feel really good,” but he also signalled further unilateral trade decisions were on the horizon.
Despite the breakthrough, analysts say the agreement’s limited scope raises doubts about its durability. Details remain scant, and the core trade disputes between the two global powers — particularly over semiconductors, intellectual property, and strategic technologies — are still unresolved.
“There’s a framework to implement the Geneva consensus,” said US Commerce Secretary Howard Lutnick. “Once the presidents approve it, we’ll move to implementation.” He declined to elaborate on what counter-measures the US might lift as part of the deal.
China’s Vice Commerce Minister, Li Chenggang, echoed that the framework was in place but called it provisional, referencing consensus reached during a 5 June call between both leaders.
White House Press Secretary Karoline Leavitt confirmed that President Trump was reviewing the agreement. “But what the president heard, he liked,” she said.
At the heart of the negotiations is a growing strategic rivalry. Washington has accused Beijing of delaying vital exports and has tightened restrictions on Chinese access to advanced semiconductor technologies — a move that has angered Chinese officials. China, in turn, has bristled at US tariffs and called out what it views as discriminatory visa policies against its students and researchers.
The rare earths dispute was particularly pressing for US negotiators. These minerals are vital for the US defence and tech industries, and China controls more than 80% of the global supply.
“This agreement ensures our companies can access the materials they need, and that our students can continue their studies without fear,” Treasury Secretary Scott Bessent told Congress on Wednesday.
Still, Bessent warned that a full trade agreement was far off. “This will be a much longer process,” he said, adding that other negotiations — including with the EU — might exceed the administration’s 90-day deadline.
The Geneva truce in May temporarily lowered tariffs on both sides. US duties on Chinese goods dropped from 145% to 30%, while China reduced tariffs on US imports to 10% and lifted export barriers on certain critical minerals. However, accusations of breaches soon followed, mostly centred on non-tariff issues.
Trump now says US tariffs on Chinese goods will remain at 55%, though that includes tariffs from his first term.
Markets reacted cautiously to news of the deal. Terry Haines, founder of the Washington-based consultancy Pangaea Policy, described it as having “very limited scope and unfinished status.”
“Resetting the Geneva pause is the smallest of accomplishments,” he said, “and doesn’t suggest that a broader US-China trade deal or geopolitical rapprochement is any closer.”
As the 9 July deadline to reimpose higher tariffs looms, Trump has vowed to send out letters detailing new trade terms to other partners, suggesting his administration will continue to favour a bilateral, high-pressure approach.
For now, the deal with China represents a step forward — but one that leaves many of the deepest divisions unaddressed.
Chioma Kalu
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