US President Donald Trump has announced that the US and China have formally signed a trade agreement, wrapping up months of tense negotiations. The deal locks in the framework hammered out in Geneva and aims to bring some stability to relations between the world’s largest economies.
“We just signed with China yesterday,” Trump said at the White House on Thursday, declining to share further details.
Stephen Miran, chairman of the White House Council of Economic Advisers, told Yahoo Finance the administration will likely extend its tariff pause for countries negotiating “in good faith.” “You don’t blow up a deal that’s making real progress by dropping a tariff bomb,” Miran said.
Despite this softer tone, Trump has repeatedly threatened to announce each country’s tariff rates unilaterally, leaving many trade partners wary. Miran added he doesn’t expect average tariffs to fall below 10% over the long run, though some nations could negotiate lower rates while others might face the return of steep “Liberation Day” tariffs.
Beyond China, the administration has locked in a trade pact with the UK. But talks with Canada are teetering. Prime Minister Mark Carney’s government is threatening new tariffs on US steel and aluminium by late July if no agreement is reached. Both sides are aiming for a mid-July deal.
Trump’s unpredictable approach has caused friction. Bloomberg reported that several countries are hesitant to finalise deals without clarity on whether US tariffs on metals, chips, and other products will remain in force.
The European Union has also drawn a red line, promising to retaliate if the US sticks to its baseline 10% tariffs. Trump, meanwhile, has threatened duties as high as 50% on EU imports.