TLDR
- Trump announces US and China have formally signed a trade agreement ending months of negotiations
- Deal formalizes the informal understanding reached during earlier talks in Geneva and London
- Agreement involves reducing tariffs for 90 days while working on comprehensive trade accord
- China secures 10% “reciprocal” tariffs but faces additional 20% tariffs on all imports
- US races to finalize trade deals with multiple partners before July 9 tariff deadline
President Donald Trump announced Thursday that the United States and China have formally signed a trade agreement. The deal brings an end to months of negotiations between the world’s two largest economies.
“We just signed with China yesterday,” Trump said during a White House briefing. He did not provide additional details about the agreement’s specific terms.
The signed agreement formalizes what had previously been an informal understanding reached during negotiations. Earlier talks in Geneva and London had produced handshake deals but lacked formal documentation.
🚨 BREAKING: President Trump says he officially signed a trade deal with China 🇺🇸🤝🇨🇳 pic.twitter.com/d9vf0M4lE0
— Trader Edge (@Pro_Trader_Edge) June 27, 2025
A White House official explained the countries had “agreed to an additional understanding for a framework to implement the Geneva agreement.” This refers to trade talks held in May when both nations first negotiated a truce.
Two sources familiar with the situation said Washington and Beijing appear to have put in writing what was previously negotiated but not formally documented. US officials had initially sought a handshake deal with China, though experts criticized this approach as naive.
Geneva Agreement Foundation
The original Geneva agreement involved both countries reducing tariffs on each other for 90 days. During this period, they would work to hammer out a comprehensive trade accord.
The deal had stalled over disagreements about Chinese rare earth exports and US export controls. These issues created an impasse that required additional negotiations.
Earlier this month, Treasury Secretary Scott Bessent led a US team to London for talks with Chinese Vice-Premier He Lifeng. The team included Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
After two days of London negotiations, both sides announced they had reached a deal. However, they provided no specific details about the agreement’s terms.
Commerce Secretary Lutnick confirmed Thursday they had completed the deal originally reached in Geneva. “That deal was signed and sealed two days ago,” he told Bloomberg Television.
Current Tariff Structure
Under the current arrangement, China has secured lower “reciprocal” tariffs of 10 percent. This followed a period of escalating tit-for-tat tariff increases between both countries.
Trump has maintained additional tariffs of 20 percent on all Chinese imports. The administration cites Beijing’s failure to slow the flow of fentanyl precursors from China as justification.
The Chinese embassy in Washington declined to comment on the agreement. They said they had “nothing to share” when asked about the deal.
Sean Stein, president of the US-China Business Council, offered cautious optimism about the agreement. “While we need to look at the details, if the deal brings more certainty, predictability, and fairness into US-China trade it will be a great victory for the people of both countries,” he said.
July Deadline Pressure
The deal comes as the Trump administration races to reach agreements with multiple trading partners. A July 9 deadline looms for when “reciprocal” tariffs announced in April would be reapplied.
Those tariffs, up to 50 percent on most US trading partners, were temporarily lowered to 10 percent for 90 days. This allowed foreign countries time to negotiate permanent settlements.
US officials have been conducting intensive talks with countries including India, Vietnam, South Korea, Japan and the European Union. Only the United Kingdom has reached a trade agreement with the US so far.
The administration is also considering global tariffs on imports in specific sectors. These include semiconductors, consumer electronics, aerospace parts, lumber, copper, pharmaceuticals and critical minerals.
White House Council of Economic Advisers Chairman Stephen Miran indicated the administration may extend the tariff pause for countries negotiating in good faith. He told Yahoo Finance that officials don’t want to “blow up a deal that’s in process and making really good faith, sincere, authentic progress by dropping a tariff bomb in it.”
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