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American Focus > Blog > Economy > Donald Trump says US-China trade truce has been ‘signed’
Economy

Donald Trump says US-China trade truce has been ‘signed’

Last updated: June 26, 2025 7:20 pm
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Donald Trump says US-China trade truce has been ‘signed’
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The recent developments in the US-China trade deal have sparked a wave of excitement and speculation in Washington, business circles, and around the world. President Donald Trump announced on Thursday that the two countries had officially signed a trade agreement, marking a significant milestone in their ongoing negotiations.

The agreement, which comes on the heels of a ceasefire reached in London, signifies a step towards resolving the trade dispute between the two economic powerhouses. While details of the deal have not been disclosed, a White House official confirmed that the US and China have reached an “additional understanding” to implement the Geneva agreement, which was initially negotiated in May.

Sources familiar with the situation revealed that the agreement in Geneva involved a temporary reduction of tariffs on both sides for 90 days as they worked towards a comprehensive trade accord. However, disagreements over issues such as Chinese rare earth exports and US export controls had hindered progress.

Treasury secretary Scott Bessent, commerce secretary Howard Lutnick, and US trade representative Jamieson Greer led a team in talks with Chinese vice-premier He Lifeng in London to resolve these issues. After two days of negotiations, a deal was reached, although specifics were not provided.

Commerce secretary Howard Lutnick confirmed that the deal signed recently was a culmination of the agreement reached in Geneva. The news has been met with cautious optimism, with Sean Stein, president of the US-China Business Council, expressing hope that the deal will bring more certainty and fairness to US-China trade.

As the Trump administration continues to pursue trade agreements with various partners, including India, Vietnam, South Korea, Japan, and the EU, the focus remains on achieving permanent settlements. The administration has already reached a trade agreement with the UK, while China has secured lower reciprocal tariffs of 10 percent.

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In the midst of these negotiations, the administration is also considering applying global tariffs to imports in key sectors such as semiconductors, consumer electronics, aerospace parts, lumber, copper, pharmaceuticals, and critical minerals. These developments signal a shift in US trade policy and have far-reaching implications for businesses and economies around the world.

As the details of the US-China trade deal continue to unfold, it is essential for stakeholders to stay informed and up-to-date on the latest developments. Unlock the White House Watch newsletter for free and receive expert analysis and insights on what Trump’s second term means for Washington, business, and the world. Stay informed, stay ahead.

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