President Trump on Thursday confirmed that the US has finalized a formal trade agreement with China, ending months of negotiations and locking in a framework first outlined in Geneva.
The deal includes a key provision: China will deliver rare earth materials, while the US lifts certain countermeasures. Commerce Secretary Howard Lutnick confirmed the terms were finalized during recent meetings in London with Chinese Vice Premier He Lifeng.
“They’re going to deliver rare earths to us, and we’ll take down our countermeasures,” Lutnick told Bloomberg.
Deal Pressure Builds Ahead of July 9
The agreement comes just two weeks before Trump’s July 9 tariff deadline, when countries without deals risk tariffs of up to 50% on US imports. While the threat remains, White House officials signaled flexibility for countries negotiating in “good faith.”
“You don’t blow up a deal that’s making sincere progress by dropping a tariff bomb,” economic adviser Stephen Miran told Yahoo Finance.
Who’s Next?
- Canada and Japan are racing to finalize their agreements.
- The European Union is considering tariff cuts and quota systems to get a deal done, but internal tensions remain. Germany is pushing for speed, while France warns against sacrificing long-term leverage. (More: EU ready for trade deal with US but prepared to fail)
- Trump hinted that India could be next: “We’re going to do top 10 deals, put them in the right category… then the others will fall in line.”
Some Confusion Still
Despite progress, uncertainty remains over Trump’s broader tariff strategy—especially regarding metals, semiconductors, and industrial goods. Some countries are reluctant to sign without full clarity on which tariffs still apply.
Meanwhile, the Federal Reserve is closely watching how these deals impact inflation. Trump is also pushing for a sweeping tax and spending bill to move through the Senate in parallel.
“Everybody wants to make a deal,” Trump said, with more agreements expected in the coming days.
