The U.S. and China have reached a “framework” to begin implementing the trade deal struck last month in Geneva, Commerce Secretary Howard Lutnick announced. The breakthrough follows high-stakes meetings in London and a recent call between President Donald Trump and Chinese President Xi Jinping.
Trump confirmed the news Wednesday on Truth Social. “Our deal with China is done, subject to final approval with President Xi and me,” he posted. The announcement marks a major step forward in the 90-day détente both sides agreed to in May, though tensions had flared in recent weeks over accusations of non-compliance.
“We have reached a framework to implement the Geneva consensus,” Lutnick said. He noted that both nations have agreed in principle and that final sign-off could come as early as Wednesday. “I feel really good about where we got to,” he added.
Trump highlighted several key terms of the agreement. “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!”
He continued with optimism: “Adding to the China readout, President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!”
According to The Wall Street Journal, one of the main U.S. goals was to accelerate Chinese exports of rare-earth minerals and the magnets that use them. In return, China’s negotiators pressed the U.S. to ease restrictions on high-tech exports, including AI chips and design software.
Although both sides remained vague about the full details, Lutnick confirmed that rare earths are central to the deal. “We do absolutely expect that the topic of rare earth minerals and magnets, with respect to the United States of America, will be resolved in this framework implementation.”
Earlier this month, China accused the U.S. of undercutting the deal. A spokesperson for the Chinese Ministry of Commerce cited U.S. restrictions on AI chip exports, revocation of Chinese student visas, and new bans on chip design software. The statement warned that these actions violated the spirit of the Geneva consensus.
White House Press Secretary Karoline Leavitt responded firmly. “At the direction of President Trump, the Administration is aggressively moving to onshore critical supply chains, including the production of magnets, in the United States.”