Talks between the United States and China in London have reached a high-stakes framework agreement that could avert devastating tariff hikes and reduce China’s grip on global rare earth exports.
After 48 hours of tense negotiations, the two sides announced late last night that they had agreed in principle to extend the trade deal until Aug. 10, 2025, pending word from their respective presidents.
As part of the agreement, both countries also pledged to lift their respective export restrictions — a significant step in easing escalating trade tensions.
The move is also seen as preventing tariffs from rising as high as 145% by the end of the extension.
US Commerce Secretary Howard Lutnick said the framework gives the deal “substance,” but he also warned that final approval still depends on the two presidents.
China’s Vice Minister of Commerce, Li Chenggang, echoed the sentiment, calling it “a step forward, not the end.”
Markets barely reacted, reflecting deep investor skepticism.
Analysts warned that the real drama was yet to begin.
Paul Triolo of the Asia Society said rare earths were a key sticking point in the deal, and stressed that as long as shipments have not yet begun, the deal remains on paper.
With China accounting for more than 90% of global rare earth production, and the Pentagon working hard to build a domestic supply chain by 2027, time is running out not only on tariffs, but also on strategic freedom.
The countdown to August 10 has begun!
