US, China strike preliminary trade deal, says Trump

New Delhi, Jun 11: The United States and China have reached a provisional agreement aimed at easing trade tensions, with US President Donald Trump declaring the deal “done”, subject to final approval from both himself and Chinese President Xi Jinping, reports the BBC.

Following two days of high-level talks in London, Trump said the agreement would ensure US access to critical rare earth minerals, vital for the production of advanced technologies such as smartphones, electric vehicles, and defence equipment, while also allowing Chinese students to resume studies at American universities.

These were key areas of contention in the long-running dispute between the world’s two largest economies. Posting on his Truth Social platform, President Trump stated that China would supply "full magnets, and any necessary rare earths" up front, while the US would honour its commitments, including access for Chinese students to American educational institutions.

Rare earth exports were central to the London discussions. The US has previously accused China of withholding these crucial materials, while Beijing has criticised Washington’s restrictions on the export of semiconductors and AI-related technology to Chinese firms.

US Commerce Secretary Howard Lutnick said the two countries had “reached a framework to implement the Geneva consensus,” referring to a previous round of negotiations held in Switzerland last month. “Once the presidents approve it, we will then seek to implement it,” Lutnick said, as quoted by the BBC.

Chinese Vice Commerce Minister Li Chenggang echoed this sentiment, saying the two sides had reached a framework based on the phone conversation between Trump and Xi Jinping on June 5, as well as the Geneva meeting, reports BBC. The Geneva accord had led to a temporary truce: US tariffs on Chinese goods were reduced to 30%, while China cut duties on US products to 10% and agreed to ease export restrictions on critical minerals.