U.S. and China Sign Trade Deal Amidst Economic Shifts

A photograph released by the Xinhua News Agency shows Chinese Vice Premier He Lifeng shaking hands with U.S. Treasury Secretary Scott Bessent before their meeting in London on June 9, 2025. The meeting was held to discuss China-U.S. trade.

President Donald Trump announced that the U.S. and China had signed a trade agreement, and he anticipated a deal with India soon. Commerce Secretary Howard Lutnick confirmed the agreement was signed earlier in the week, though neither provided details.

Trump stated the deal with China was recently signed, and Lutnick indicated it was finalized two days prior. This agreement followed initial discussions in Geneva in early May, which led to the postponement of significant tariff increases that threatened trade between the two countries. Subsequent talks in London established a framework for negotiations, and the deal mentioned by Trump appeared to formalize that agreement.

Lutnick noted that the President prefers to finalize such deals himself, and that more agreements were expected. China has not released any details about the agreement. However, earlier in the week, China announced it was expediting approvals for rare earth exports, materials crucial for high-tech products.

The Chinese Commerce Ministry stated that Beijing was accelerating the review of export license applications for rare earths and had approved a number of compliant applications. Export controls on these minerals became a key point in the latest trade negotiations, following China's imposition of permitting requirements on seven rare earth elements in April. This move threatened to disrupt production of various high-tech products in the U.S. and globally.

The agreement reached in May in Geneva aimed to reduce punitive tariff hikes imposed as Trump escalated the trade war. However, some tariffs, such as those related to fentanyl trade and duties on aluminum and steel, remained in effect.

The fluctuating trade policies are impacting both the U.S. and Chinese economies. The U.S. economy contracted in the first quarter, partly due to a surge in imports as businesses and consumers sought to purchase foreign goods before potential tariffs. In China, factory profits declined significantly in May, with the automotive industry experiencing a substantial drop.

Trump and other U.S. officials have signaled their intention to reach trade agreements with numerous other countries, including India. Lutnick reiterated the expectation of more trade deals to come.