US, China near trade deal to ease growing tensions

US and Chinese officials have announced a tentative framework agreement aimed at revitalising their trade relations.

The announcement follows two days of US-China talks in London aimed at easing their escalating trade dispute.

This development follows a period of intensified trade tensions. Both countries implemented strict export controls. These actions disrupted global supply chains and caused a sharp drop in trade volumes.

According to Reuters, the deal addresses key issues. These include China’s export restrictions on rare earth minerals and magnets. It also covers US export controls on semiconductor design software and aircraft components.

Experts have weighed in on the implications of the tentative agreement.

Lars Jensen, CEO and Founder of Vespucci Maritime, noted: “The representatives are now going to brief Trump and Xi on this to seek approval – which means it is not a done deal just yet, and details are not yet known.”

Reuters emphasised the importance of the 10 August deadline, as missing it could lead to renewed tariffs and heightened tensions.

Jensen added: “A US Court of Appeals ruled the US government can continue charging tariffs while a legal appeal is reviewed.”

Despite ongoing tariff tensions, trade activity demonstrates resilience.

For example, the Port of Los Angeles handled 842,806 TEUs in April — a 9.4 per cent increase year-on-year (YoY) — and US container imports grew 1.2 per cent from March and 9.1 per cent YoY, according to Descartes’ May Global Shipping Report.

The agreement represents a cautious step towards easing tensions, but its fate rests on approval from both leaders and swift action ahead.