You may have heard President Donald Trump say this week that the USA and China struck a deal on trade. But when you look closer at what’s going on, it’s not quite a finished deal—it’s more like a first meeting or a framework for future talks. Let me walk you through it in simple words.
It’s Just the beginning — Not a final deal
China is dialing back Trump’s big announcement. A spokesperson from the Chinese Ministry of Commerce made it clear on Thursday that what we have right now is not a “done deal”—instead, it’s a first meeting. That meeting was meant to consolidate what the two sides had already started discussing back in May in Geneva, Switzerland.
So when you hear Trump say it’s all finished and ready to go, that’s not the whole story. The Chinese side is framing it differently: this is just the first step toward something more permanent.
What did they talk about?
During this first meeting in London, negotiators made some progress on a few key issues. The Chinese spokesperson described it as a framework—a kind of outline—that shows where future talks might go.
Some progress was made on addressing each side’s trade worries. There were talks about rare earths—which are hard-to-find materials used in smartphones and electric cars—and the export of these resources. The spokesperson explained that export licenses for these materials would be issued “based on reasonable needs.” That means companies that follow the rules can apply for a license and hopefully get approval.
Trump’s view was much more positive
President Trump, meanwhile, called it a done deal. On Wednesday, in a post on Truth Social, Trump said: “Our deal with China is done, subject to final approval with President Xi and me.” He described the future framework as “excellent” and insisted that the USA would soon start to get what it wants — a 55% tariff — while Beijing drops its tariff to 10%. Trump also added that a key part of the deal is the delivery of rare earths and magnets.
He even said Chinese students would be able to come and study at US colleges and universities—something Trump called “always good.”
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Final approval still needed
Howard Lutnick, the US Secretary of Commerce, called this a “handshake for a framework.” That means it’s not a finished deal just yet; the presidents of the two countries—Trump and Xi—need to approve it first. There were some points that negotiators didn’t have the power to resolve on their own.
“Once that’s done, we will be back on the phone together, and we will begin to implement this agreement,” Lutnick said. “The two largest economies in the world have reached a handshake for a framework.”
