FX.co ★ U.S., China Strike Trade Framework After London Talks

The United States and China have established a trade agreement framework subsequent to two days of high-level discussions in London. "We have formulated a framework to implement the Geneva consensus and the recent communication between the two presidents," stated U.S. Commerce Secretary Howard Lutnick, echoing sentiments expressed by China's trade envoy, Li Chenggang. This agreement comes in the wake of a phone conversation between Presidents Trump and Xi, which alleviated tensions stemming from mutual accusations of breaching the Geneva trade agreement. In May, both countries consented to a 90-day suspension of reciprocal tariffs and committed to rescinding certain measures. Lutnick indicated that he, along with U.S. Trade Representative Greer, will present the framework for President Trump's endorsement before proceeding. A significant component of the agreement involves addressing China's restrictions on rare earth exports and the U.S. relaxing its recent technology export restrictions. Treasury Secretary Scott Bessent has returned to Washington to provide testimony before Congress.