US–China Set Trade Framework, Agree on Tariff Pause
- ICMSS
- Jun 13
- 2 min read
US and China agree to suspend new tariffs, aiming to stabilize trade relations.
US and China trade talks result in tariff pause, signaling intent to ease tensions.
By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto
June 13, 2025 at 16:30 GMT+7
The London talks between US and China have led to a tentative agreement on trade and economic cooperation. US Treasury Secretary, Janet Yellen, and Chinese Vice Premier, He Lifeng, met for two days to discuss the ongoing trade tensions between their nations.
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They both agreed to temporarily hold off on new tariffs while negotiations are still continue. The meeting also produced a broad outline for future economic and trade cooperation. Although details are still limited, this move shows a commitment to keep talks going and avoid further escalation.
No binding targets were announced, but both governments described the discussions as constructive. This outcome represents an attempt to revive dialogue during a time of strained economic relations, focusing on keeping communication channels open rather than implementing new trade measures.
Chinese Vice Premier He Lifeng (right) shakes hands with US Treasury Secretary Scott Bessent before their meeting to discuss China–US trade | Source: AP
Despite renewed engagement, the framework achieved in London reflects only limited progress. The agreement does not include any rollback of existing tariffs, so the main friction point in trade matters still exists between the US and China.
There was no announcement on the timelines or the introduction of a monitoring system for further steps, and thus the situation lacked fixed commitments. This absence of concrete measures has resulted in cautious responses from markets, with investors viewing the outcome as largely symbolic rather than substantive.
Analysts also noted that the lack of measurable benchmarks makes it difficult to assess whether the agreement will lead to meaningful changes. Consequently, uncertainty continues to overshadow the framework’s effectiveness and its potential impact on long-term trade relations.
US Treasury Secretary Scott Bessent leaves on his way back to the US, while trade talks between the US and China continue, in London, Britain | Source: REUTERS/Toby Melville/
The recent trade truce marks a strategic attempt by the US and China to stabilize bilateral relations from the ongoing economic tensions. The pause on additional tariffs is seen by both sides as a concerted effort to prevent further escalation, especially before the US elections.
Both governments emphasized the importance of “communication over confrontation,” indicating a softer diplomatic tone. However, the discussions did not lead to resolving the most crucial issues, including those over industrial policy, intellectual property rights, and technology export controls.
While the tone has softened, persistent disagreements on key structural issues continue to prevent meaningful breakthroughs. This ongoing friction limits the agreement’s ability to deliver lasting progress, reinforcing that it is more symbolic than transformative in reshaping US–China economic relations.
Source:
Reuters CNBC
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