Trump Says U.S. Seals New Trade Deal With China/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump announced the U.S. has signed a new trade deal with China but offered no specifics, leaving questions about rare earth exports and tariff relief unresolved. Chinese officials confirmed progress but avoided details on key issues. The agreement follows months of talks and amid tensions over tariffs and fentanyl precursor chemicals.
U.S.–China Trade Deal + Quick Looks
- Trump claims deal signed: President touts new trade pact but offers few details.
- Rare earths a key issue: China hints at export approvals but specifics remain unclear.
- Fentanyl concerns linger: Beijing takes limited steps on fentanyl precursors, a sticking point for Trump.
- Economic toll visible: Trade tensions weigh on both U.S. GDP and Chinese factory profits.
- More deals to come: Trump eyes India and others for future trade agreements.
Trump Says U.S. Seals New Trade Deal With China
Deep Look
TRUMP ANNOUNCES NEW TRADE DEAL WITH CHINA
President Donald Trump declared Thursday that the United States and China have signed a new trade agreement, though he provided no specifics about what the deal includes or how it differs from past negotiations.
“We just signed with China the other day,” Trump said late Thursday, speaking with characteristic confidence yet offering no further elaboration.
Commerce Secretary Howard Lutnick confirmed the signing in an interview with Bloomberg TV, describing it as “signed and sealed” two days prior.
“The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal,” Lutnick said, reinforcing Trump’s desire to personally broker major economic agreements.
DETAILS STILL UNCLEAR
Despite Trump’s announcement, significant ambiguity surrounds the nature of the agreement. It’s uncertain whether this deal represents an entirely new framework or is simply a formalization of the rare earth minerals pact Trump announced two weeks ago, aimed at ensuring U.S. industries access to critical resources used in electric vehicles, wind turbines, and high-tech manufacturing.
China’s Commerce Ministry issued a carefully worded statement Friday, confirming only that the two countries had “further confirmed the details of the framework.” Notably, the statement avoided explicitly mentioning U.S. access to rare earths, leaving a crucial question unanswered.
“China will approve the export applications of controlled items that meet the conditions in accordance with the law,” the Ministry said. “The United States will cancel a series of restrictive measures taken against China accordingly. It is hoped that the United States and China will meet each other halfway.”
RARE EARTHS: TRADE WAR’S NEW FRONT
Rare earth minerals have become a central battleground in U.S.-China trade tensions. In April, Beijing imposed new permitting requirements on exports of seven key rare earth elements, creating fresh uncertainty for global supply chains dependent on China’s dominance in mining and refining these resources.
Earlier this week, China announced it was accelerating the approval process for export licenses of rare earths and had approved “a certain number of compliant applications.” However, the scope and scale of those approvals remain undisclosed.
Export controls have now arguably overshadowed tariffs in trade discussions, given their potential to disrupt production in everything from electronics to electric cars.
FENTANYL STILL A FLASHPOINT
Another sticking point in negotiations has been the fentanyl crisis. Trump has repeatedly pressured Beijing to clamp down on exports of precursor chemicals used by Mexican cartels to manufacture the deadly opioid, which has fueled overdoses across the United States.
Last week, China announced it would designate two additional substances as fentanyl precursors, subjecting them to stricter regulation. Trump previously imposed 20% tariffs on Chinese imports over the fentanyl issue, forming a significant portion of the 30% blanket tariffs still in place on Chinese goods.
ECONOMIC TOLL MOUNTS
Prolonged trade tensions have left both economies bruised. In the U.S., GDP contracted at an annualized 0.5% rate in the first quarter of 2025, partly driven by businesses and consumers rushing to import goods before new tariffs hit. Meanwhile, China’s factory profits plummeted over 9% in May compared to a year earlier, with the automotive sector bearing the brunt of the losses.
NEXT UP: INDIA AND BEYOND
Despite ongoing disputes, Trump expressed optimism about sealing future trade pacts, hinting at India as the next major target for negotiations.
“We’re going to have deal after deal after deal,” Lutnick said, underscoring the administration’s intent to strike agreements worldwide.
For now, the details of the supposed China deal remain elusive, leaving markets, manufacturers, and global policymakers eagerly awaiting clarity on how the world’s two largest economies plan to navigate their complex trade relationship.
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