US-China Trade Deal Breakthrough in London

By Elke Porter | WBN News Global | June 11, 2025
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London, June 11, 2025 - The United States and China have successfully negotiated a new framework agreement that aims to restore their trade relationship following intensive discussions in London this week. The breakthrough comes after months of escalating tensions and represents a potential turning point in the world's most significant bilateral trade relationship.

Commerce Secretary Howard Lutnick announced the preliminary agreement on Wednesday, emphasizing that both economic superpowers had reached "a handshake for a framework" to implement previous trade understandings. The deal builds upon consensus reached during a phone conversation between President Donald Trump and Chinese President Xi Jinping on June 5th, as well as agreements made at last month's Geneva negotiations.

Critical Approval Process Ahead

The framework requires final approval from both presidents before implementation can begin. Lutnick stressed that negotiators would return to their respective capitals to secure presidential endorsement, with Chinese Vice Commerce Minister Li Chenggang confirming similar next steps for Beijing.

The agreement addresses one of the most contentious issues in US-China trade relations: export controls on critical materials. Both nations have committed to rolling back restrictions on vital exports, with particular focus on China's rare earth minerals and magnets that are essential for American manufacturing operations.

Building on Previous Progress

This framework extends the 90-day tariff reduction agreement reached in Geneva, where the US lowered tariffs on Chinese goods from 145% to 30%, while China reduced its levies on American products from 125% to 10%. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer led the American delegation alongside Chinese Vice Premier He Lifeng.

Market Response

Financial markets responded positively to the announcement, with China's CSI 300 index climbing 0.77% following the news. US stock futures remained relatively stable as investors awaited additional details about the agreement's specific provisions.

The framework represents careful diplomatic progress between the world's two largest economies, offering hope for reduced trade tensions while acknowledging the complex approval process that lies ahead before implementation can commence.

TAGS: #US China Trade #Trade Truce #Rare Earths #Trade Agreement #Global Economy #Tariff Relief #WBN News Global #Elke Porter

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