The US & China Trade Agreement: What We Know So Far

Following extensive negotiations in London last week, a trade agreement has finally been reached between the United States and China.

The world’s two largest economies have been locked in a prolonged trade dispute. Since former President Trump’s declaration of “Liberation Day” in April 2025 — marked by the introduction of reciprocal tariffs on 186 members of the World Customs Organization — tariff escalations between the US and China have become routine.

Given their dominance in global trade, the ongoing conflict has had significant consequences for consumers worldwide, including steep price increases over the past two to three months.

What Does the New Agreement Entail?

While full details are still limited, here’s what we know so far:

• US Treasury Secretary Scott Bessant confirmed that the deal will grant American companies easier access to Chinese rare earth minerals — a vital component in microchip production.
• In return, the Chinese Ministry of Commerce announced that the US will remove several restrictive measures previously placed on Chinese imports, although specifics are yet to be disclosed.
• The agreement also includes a commitment by US federal authorities to stop efforts aimed at revoking visas for Chinese students.

Is This the End of the Trade War?

This agreement appears to mark a step toward de-escalation. Both nations are now acutely aware of the mutual economic damage caused by retaliatory tariffs. If the deal helps restore trade flows to pre-April levels, it will be seen as a positive development.

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