The US and China have reached a significant agreement in principle to de-escalate trade tensions, a crucial development for the world’s two largest economies. On June 11, 2025, US Commerce Secretary Howard Lutnick announced that both nations are working towards resolving restrictions on rare earth minerals and magnets, essential for modern technology.
- US and China agree on trade de-escalation framework
- Rare earth minerals negotiations are crucial
- Trump and Xi to approve the plan
- Temporary truce led to tariff reductions
- Both sides accuse each other of breaches
- China approved rare earth export licenses
This agreement follows two days of negotiations in London and is set to be presented to Presidents Donald Trump and Xi Jinping for final approval. The discussions focused heavily on Chinese exports of rare earth minerals, which have been at the center of recent trade disputes.
This breakthrough raises the question: will this agreement lead to lasting peace in US-China trade relations? The recent history of accusations and tariff hikes suggests a cautious optimism. Key points include:
- Both nations have accused each other of breaching previous agreements.
- Rare earth minerals are vital for industries like smartphones and electric vehicles.
- The framework aims to implement previous consensus from high-level talks.
As negotiations progress, it remains essential for both countries to adhere to their commitments. Will this framework pave the way for a more stable economic relationship?
