President Donald Trump confirmed on Thursday, June 26, that the United States and China have signed a new trade agreement, although few details have been publicly disclosed. The announcement marks a notable development in the ongoing economic relationship between the world’s two largest economies.
Speaking late Thursday, Trump stated, “We just signed with China the other day,” but offered no specifics about the deal’s contents. U.S. Commerce Secretary Howard Lutnick later confirmed the agreement in an interview with Bloomberg TV, saying it had been “signed and sealed” two days earlier.
It remains unclear whether this agreement is separate from a previously announced deal made two weeks ago. That earlier pact aimed to improve U.S. access to rare earth minerals—crucial materials for high-tech sectors such as electronics, electric vehicles, and defense—and included a U.S. promise to halt the revocation of student visas for Chinese nationals.
China’s Commerce Ministry issued a statement on Friday, June 27, acknowledging progress in trade talks and confirming that both sides had “further clarified the framework details.” However, the ministry did not confirm any new commitments regarding rare earth exports. Instead, it reiterated that export applications would be processed under Chinese law and called on the U.S. to reciprocate by removing certain trade restrictions.
“The United States will cancel a series of restrictive measures taken against China accordingly,” the ministry noted, encouraging both parties to “meet each other halfway.”
This latest agreement appears to formalize outcomes from earlier negotiations. Talks in Geneva during May prompted both countries to pause proposed tariff increases. Follow-up meetings in London helped shape a broader framework, ultimately leading to the recent signing.
In recent weeks, the focus of negotiations has shifted from tariffs to export controls—especially concerning rare earth elements. In April, China introduced new licensing requirements for seven key rare earth minerals, raising alarm in Washington and among U.S. manufacturers who rely on them for products such as smartphones, wind turbines, and robotics.
Earlier this week, China announced it had expedited export license reviews and approved “a certain number of compliant applications,” helping ease short-term tensions—though long-term concerns remain.
Meanwhile, progress has also been made on another contentious front: fentanyl. Last week, China designated two additional substances as fentanyl precursors, making them subject to tighter regulation. Trump, who has frequently criticized China’s role in the opioid crisis, had previously imposed a 20% tariff on Chinese goods in response, as part of a broader 30% tariff package.
The Geneva agreement from May also called for a gradual reduction of tariffs that escalated during Trump’s trade war. However, duties on steel, aluminum, and fentanyl-related goods remain in place.
These policy shifts are already affecting both economies. The U.S. economy contracted at an annual rate of 0.5% in the first quarter, partly due to a surge in imports as businesses sought to avoid potential new tariffs. In China, factory profits dropped over 9% year-on-year in May, with the automotive sector especially impacted.
Looking ahead, U.S. officials expressed optimism about future trade deals. Trump indicated that a new agreement with India may be on the horizon, while Lutnick echoed the administration’s upbeat tone, saying, “We’re going to have deal after deal after deal.”
Despite the lack of specific details, the announcement signals a cautious thaw in U.S.-China trade relations during a period of ongoing economic pressure for both nations.
