In mid-May 2025, the United States and China reached a 90-day trade truce during talks held in Geneva. The agreement included a significant reduction in tariffs between the two sides:
The United States reduced its tariffs on Chinese products from 145% to 30%.
China lowered tariffs on American imports from 125% to 10%.
China also committed to lifting restrictions on rare earth metal exports, which are essential for many technological industries.
Mutual accusations of breaching the agreement
Despite the truce, tensions escalated again after the exchange of accusations between the two parties:
The United States accuses China of not fulfilling its commitments, especially regarding the actual removal of restrictions on rare earth metal exports.
China accuses the United States of breaching the agreement by imposing additional restrictions, such as halting the sale of electronic chip design software to Chinese companies, warning against the use of Huawei chips, and revoking visas for Chinese students.
Resumption of talks in London
On June 9, 2025, a new round of high-level talks began in London, following a "very positive" phone call between U.S. President Donald Trump and Chinese President Xi Jinping.
Key issues on the table:
The future of China's rare earth metal exports.
China's access to vital American technology and products.