The United States and China have reached a tentative framework agreement to ease ongoing trade tensions due to tariffs, following two days of high-level negotiations in London on June 9–10, 2025.
This deal builds upon the earlier Geneva truce from May, which had temporarily reduced some tariff pressures. While the London talks did not produce a final accord, negotiators described the result as a significant step forward, with U.S. Commerce Secretary Howard Lutnick noting it “put meat on the bones” of prior agreements.
Tariff levels, however, remain high. The U.S. will maintain a total tariff rate of 55% on Chinese imports. This includes a 10% baseline tariff, an additional 20% levy specifically targeting chemicals used in fentanyl production, and the remainder consisting of pre-existing tariffs. China, for its part, will keep a 10% tariff in place on U.S. goods, Reuters reports.. These elevated rates are part of a broader “reciprocal enforcement” strategy emphasized by U.S. officials, with no immediate reductions planned.
A key element of the deal involves mutual concessions. China has agreed to ease restrictions on the export of rare earth minerals and magnets, which are critical for U.S. technology and electric vehicle industries.
In return, the U.S. will loosen limits on Chinese student visas, particularly in science, technology, engineering, and mathematics (STEM) fields. These reciprocal steps are expected to boost confidence on both sides and facilitate further negotiations.
The framework still requires final approval from both President Donald Trump and President Xi Jinping.
