The United States and China agreed to a framework and implementation plan to ease trade tensions.
“We have reached a framework to implement the Geneva consensus,” U.S. Commerce Secretary Howard Lutnick said.
The commerce secretary indicated the deal should resolve issues between the two countries on rare earths and magnets. Representatives will now take the proposal to their respective leaders for approval.
“We do absolutely expect the topic of rare earth minerals and magnets with respect to the United States of America will be resolved in this framework implementation,” Lutnick said.
The progress comes after two days of trade talks between the U.S. and China in London. The high-stakes negotiations follow Trump's call with Xi Jinping last week, which both leaders framed as positive.
The mechanism of trade and economic consultations between the two countries was established in conclusion of negotiations in Geneva held from May 10 to 11. Beijing and Washington agreed at the meeting to partly reduce mutual tariffs, which climbed to 100% by May.
