The current tariff pause is set to expire on August 12, 2025, after which tariffs could potentially rise back to 145%, although this is considered unlikely.

U.S. Commerce Secretary Howard Lutnick described the agreement as a significant advancement, adding substance to earlier agreements.

Key representatives from both governments participated in the trade talks, addressing major points of contention.

The agreement addresses key issues such as China's restrictions on rare earth mineral exports and U.S. controls on semiconductor design software.

The United States and China have reached a tentative framework agreement to ease trade tensions related to tariffs after negotiations in London on June 9 and 10, 2025.

Following these discussions, the new trade agreement imposes a 55% tariff on all Chinese imports and a 10% tariff on American exports to China.

The U.S. will maintain a total tariff rate of 55% on Chinese imports, which includes a 10% reciprocal levy and additional tariffs related to fentanyl trafficking.

As part of the agreement, China has agreed to ease restrictions on the export of rare earth minerals and magnets, which are crucial for U.S. technology and electric vehicle sectors.

Lutnick referred to the negotiations as a 'handshake for a framework', indicating that both leaders would need to approve it, suggesting unnegotiated concessions remain.

Despite the deal, a Chinese Ministry of Commerce spokesperson emphasized the need for both sides to adhere to the agreement, hinting at concerns over the reliability of U.S. commitments.

Despite claims of progress, tariffs on China have cost U.S. businesses nearly $26 billion between January and April 2025, a significant increase from the previous year.

A Chinese Ministry of Commerce spokesperson downplayed President Trump's declaration of a 'done' trade deal, stating it is merely a 'framework' that still requires final approval.