Negotiators from the United States and China met in London last week and reached an agreed framework on a trade truce, according to officials from both sides. The talks aimed to de-escalate months of tariff tensions and export restrictions that have disrupted global markets and supply chains. The framework includes a 90-day suspension on most tariffs and a commitment from China to expedite export approvals for rare earth minerals critical to US manufacturers. However, key issues such as US export controls on semiconductor technology and China’s dominance in rare earth processing remain unresolved.
The announcement brought relief to global markets, particularly in shipping and manufacturing sectors affected by previous tariff hikes. Despite the positive development, businesses on the frontlines remain cautious, aware that previous truces have collapsed and that the current deal largely restores conditions to where they were before the latest escalation. Companies continue to monitor the situation closely, maintaining contingency plans and exploring alternative supply chains to mitigate risks from any sudden policy reversals.
The framework awaits formal approval from US President Donald Trump and Chinese President Xi Jinping, with officials acknowledging that a comprehensive resolution will require further negotiations and trust-building. Until a detailed agreement is finalized, existing tariffs and export restrictions will remain in place, leaving uncertainty for businesses and consumers. The outcome of these talks will have significant implications for global trade, technology transfer, and economic stability, as both nations balance strategic competition with economic cooperation.
