By Gloria Nosa
President Donald Trump confirmed late Thursday that the United States has signed a trade agreement with China, marking a significant step toward easing the prolonged trade war between the world’s two largest economies.
“We just signed with China the other day,” Trump declared during a high-profile “Big, Beautiful Bill” event at the White House, though he did not reveal full details of the agreement.
Key Highlights of the Deal
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Rare-earth minerals and magnets: China has agreed to resume exports of critical minerals and magnets to American manufacturers—materials that had been restricted during the tariff escalation.
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Tariff arrangements: The deal solidifies a framework where U.S. retains a baseline 10% reciprocal tariff, while China maintains a 10% tariff on U.S. imports. However, additional layered tariffs remain in place on each side.
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Framework endorsed by leaders: Commerce Secretary Howard Lutnick confirmed the agreement was “signed and sealed” days earlier, while Treasury Secretary Scott Bessent said the deal “ironed out” disputes around rare-earth flows.
Why It Matters
This agreement reinforces the Geneva and London frameworks agreed upon earlier in 2025, translating diplomatic momentum into binding action just before the July 9 deadline that could have triggered reinstated U.S. tariffs.
Immediate Market Reaction
The announcement sparked a surge in U.S. equity markets, with the S&P 500 and Nasdaq hitting fresh record highs, driven by optimism over improved supply chains and reduced trade risk.
Next Steps
The White House also signaled that several other trade deals may follow before the July 9 tariff deadline—India being a front-runner among potential partners.
Bottom line: President Trump’s announcement marks a pivotal shift in U.S.–China economic relations. While core details are still emerging, the expedited flow of rare-earth materials and a stabilized tariff framework suggest a critical step forward. Whether this leads to broader resolutions or remains a tactical truce remains to be seen.
