6.11.25 Trade Update with China

Below is from PJ Quaid with RJO on overnight updates on US/China Trade deal. 

President Donald Trump declared late Tuesday that the U.S.-China trade deal is “done,” marking what he described as the formal conclusion of weeks of renewed negotiations. His announcement follows two days of talks in London between senior U.S. officials—including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick—and Chinese Vice Premier He Lifeng. The deal is based on the previously outlined “Geneva consensus” and the outcomes of Trump’s June 5 call with Chinese President Xi Jinping.

The agreement reportedly includes key trade-offs: China will resume and expand exports of rare earth minerals to the U.S., while the U.S. will roll back certain tariffs and ease restrictions on critical exports such as chipmaking tools and aerospace components. Trump characterized the deal as ready for implementation, though officials from both countries emphasized it is a framework agreement that still requires formal ratification by both presidents.

Markets reacted positively to Trump’s announcement, with global stocks and commodities rising amid hopes of reduced trade tensions. However, analysts and diplomats cautioned that the agreement lacks detailed enforcement provisions and does not yet address lingering disputes over technology transfers, intellectual property protections, and agricultural purchases. Some observers view the announcement as politically motivated, aimed at portraying strength ahead of key deadlines tied to broader tariff policy.

In essence, President Trump has declared the deal complete, but many experts stress that while this marks a major diplomatic milestone, it remains a framework with political backing, not yet a signed and implemented trade treaty. Final execution and compliance will depend on further technical negotiations and follow-through by both sides.