China Appears to Downplay Trump's Statement that a U.S. Trade Deal was 'Done,' Report Says

What Happened?

A China spokesperson appeared on Thursday to downplay President Donald Trump, who recently stated the U.S. trade deal with Chinese leaders was 'done.'

During a press conference, the spokesperson for China's Ministry of Commerce reportedly characterized the outcome of this week's trade negotiations in London as a 'framework,' according to a report.

The U.S. and China reportedly consolidated terms agreed to during negotiations held in May in Geneva, Switzerland.

According to ABC News, the spokesperson stated talks held in London between the two parties this week represented the ‘first meeting.’

Surrounding rare earth minerals, the spokesperson for China said that export licenses would be issued based on 'reasonable needs' and that 'compliant applications have already been approved.'

'New progress was also made in addressing each side's trade concerns,’ the spokesperson added.

Why it Matters

On Wednesday, President Trump said on Truth Social that 'our deal with China is done' despite signatures pending from both country's leaders on framework.

The framework includes rare earth minerals supplied upfront by China, Chinese students continuing to attend U.S. universities, and a total of 55% tariffs on Chinese imports compared to 10% tariffs on the U.S., Trump stated.

Aides to Trump and Chinese President Xi Jinping wrapped up two days of talks in the British capital late Tuesday.

According to Treasury Secretary Scott Bessent, China agreed to 'stabilize the economic relationship' with the U.S.

'First, we had to get sort of the negativity out and now we can go forward,' U.S. Commerce Secretary Howard Lutnick told reporters after the meetings.

That negativity surrounded ways to resolve previous disputes over mineral and technology exports discussed in Geneva last month.

Lutnick reportedly referred to this week's agreement as a 'handshake for a framework.'

'Once that's done, we will be back on the phone together, and we will begin to implement this agreement,' he told reporters.

How it Affects You

The U.S. and China could still steer things in the right direction.

Inflation in the U.S. showed little change last month as Trump's tariffs so far have had little impact on everyday consumer purchases.

Trump suggested on Wednesday that the Fed should slash rates ‘one full point.’

However, forecasters still anticipate that the cost of imposed tariffs could become more evident in the coming months after Trump's 90-day extension negotiation window closes.

Fed officials warned that Trump's moves on tariffs could reverse two years of progress toward correcting inflation.

But the global economy could soon be back on a positive trajectory.

It may all start with the world's two largest economies fulfilling a successful trade agreement.