London: The United States and China have reached a tentative trade truce, signalling a possible breakthrough in their prolonged economic standoff. The talks, held at Lancaster House in London, mark a key moment in ongoing efforts to stabilise relations between the two global economic powers.

While full details of the agreement remain limited, the deal reportedly includes China easing restrictions on the export of rare earth minerals and magnets, essential components used in electric vehicle motors and other high-tech industries. In return, the US has agreed to lift some recent export restrictions affecting Chinese students pursuing studies at American universities.

According to sources, the agreement still awaits formal approval from both US President Donald Trump and Chinese President Xi Jinping.

President Trump, addressing the development on his Truth Social platform, said: “OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP.”

The deal reflects both nations’ intent to de-escalate trade tensions that have persisted for years, disrupting global markets and supply chains.