In a promising development for global commerce, the United States and China have reached a preliminary “framework” agreement following two days of productive trade discussions in London. The framework, which aims to ease ongoing trade tensions, will be reviewed for final approval by U.S. President Donald Trump and Chinese President Xi Jinping.
The announcement comes on the heels of a 90-day pause in tariff escalations, initially agreed upon during recent talks in Geneva. U.S. Commerce Secretary Howard Lutnick emphasized that both sides “pounded through” major areas of disagreement and are now working to implement the “Geneva consensus” as part of the new framework.
“This progress reflects the commitment of both nations to resolve issues constructively and maintain stability in the global trade environment,” Lutnick stated. He also indicated that certain U.S. measures, particularly those related to critical mineral exports such as rare earths, may be adjusted in response to improved supply flows.
Chinese Vice Commerce Minister Li Chenggang described the discussions as “professional, rational, in-depth, and candid,” expressing optimism that the outcome would foster greater trust and ongoing dialogue between the two leading economies.
Market response to the news was favorable, with Asian stock indices posting gains. Japan’s Nikkei 225 rose nearly 0.5%, while the Hang Seng Index in Hong Kong and the CSI 300 in mainland China climbed by approximately 1% and 0.8%, respectively. The positive market sentiment signals optimism that the agreement may support economic momentum despite broader global uncertainties.
While the framework marks a crucial step forward, experts such as Deborah Elms of the Hinrich Foundation caution that finalizing comprehensive trade agreements will require sustained effort. Nevertheless, the reaffirmation of mutual interest in cooperation is seen as a constructive signal for global markets and trade stakeholders.
#ITCNewsUpdates #GlobalTradeNews #NewsUpdate #BreakingNews #TradeAgreement #USChinaTrade