China-U.S. Trade Talks in London

On June 10, 2025, trade officials from the United States and China reached a framework agreement after two days of trade negotiations at Lancaster House in London. The talks resulted in a plan to restore and reinforce the May Geneva Consensus. The discussions, held at Lancaster House, included senior representatives from both governments and aimed to reduce trade tensions and clarify the next steps.

The new agreement outlines a 90-day pause on additional tariffs and a mutual rollback of tariffs totaling 115 percentage points. It includes provisions to ease tensions over critical resources. China has agreed to lift restrictions on the export of rare earth minerals and magnets, while the United States will remove certain export controls as China resumes these shipments. These measures are intended to create a more stable trade environment and promote reciprocal cooperation.

Before the framework can be implemented, it must be reviewed and approved by President Xi Jinping and President Donald Trump. If approved, both countries are expected to reverse recent export restrictions and begin taking steps to stabilize their trade relationship.

The implications of this agreement extend beyond the bilateral relationship. Members of the Association of Southeast Asian Nations (ASEAN), for example, have been in discussions with the United States about building alternative supply chains for minerals. While there is interest in deeper cooperation, some governments expressed concern about the risk of new tariffs or shifting trade dynamics.

Markets responded cautiously to the news. While Asian stock markets recorded modest gains, U.S. futures dipped slightly, and gold prices rose slightly, reflecting investor uncertainty about the durability of the agreement. While the outcome signals progress, its long-term significance will depend on whether both governments follow through with concrete actions and maintain open lines of communication in the months ahead.