The U.S. and China have agreed on a framework to ease export restrictions and keep a fragile tariff truce alive. After two days of negotiations in London, both sides said they would remove some curbs on critical exports—China on rare earth minerals, and the U.S. on select tech products—pending approval from their respective presidents.
The move revives momentum after a stalled Geneva deal and aims to prevent retaliatory tariff hikes, which could soar to 145% by August if no broader agreement is reached. However, the framework offers little resolution to deeper disputes over tariffs and China’s economic model.
Markets reacted cautiously, with analysts stressing that meaningful progress depends on the implementation details. Meanwhile, China’s exports to the U.S. fell sharply in May, reflecting the ongoing economic toll of the trade war.
While the agreement signals a thaw in relations, a lasting resolution remains uncertain.
