Trump Confirms Trade Deal With China, Signals Major Pact With India

President Donald Trump has announced the successful conclusion of a trade agreement with China, following a prolonged tariff standoff that had seen the United States impose duties as high as 145% on Chinese imports. In response, Beijing had introduced retaliatory tariffs of up to 125% on American goods. While Trump confirmed the deal during a White House event, he did not elaborate on its contents, and Chinese authorities have not yet formally acknowledged the signing.

During the event, Trump also hinted that India may be the next country with which the U.S. will finalize a significant trade agreement. “We just signed with China yesterday… We have one on the way, perhaps with India, a very big one,” he stated. He went on to suggest that several governments are presenting strong offers to Washington, indicating more trade activity in the near future.

Commerce Secretary Howard Lutnick later clarified that the U.S.–China agreement had been signed a few days earlier and built on talks held in Geneva a month prior, where both sides established a mechanism for ongoing economic consultations. The deal, according to Lutnick, includes a key commitment from China to supply the U.S. with rare earth elements - crucial materials for a range of high-tech industries, including aerospace and renewable energy. Once these deliveries are made, he said, the U.S. intends to lift its current countermeasures.

In an interview with Bloomberg, Lutnick further revealed that the U.S. is nearing trade agreements with ten other countries, though he did not specify which ones. “We are going to make the ten best agreements, put them in the right category, and then these other countries will follow,” he said, outlining a strategy of progressive trade alignment with international partners.

The trade conflict between the U.S. and China had intensified sharply in recent months, with Trump citing Beijing’s trade surplus and alleged involvement in fentanyl trafficking as central reasons for escalating the tariff war. The new agreement is seen as a step toward de-escalation, though the underlying tensions remain unresolved.

Meanwhile, confirmation came from Beijing that trade discussions have yielded results. In a statement, China’s Ministry of Commerce said that details of the trade framework with the U.S. had been reaffirmed, echoing Secretary Lutnick’s remarks. The ministry also reiterated China’s commitment to reviewing and approving export applications for controlled items in accordance with Chinese law.

China’s statement referenced a call between Trump and President Xi Jinping on June 5, emphasizing the importance of joint efforts to promote stable economic and trade relations. It also noted that the U.S. will remove certain trade restrictions - though no specific measures were mentioned.

While the rare earth commitment is central to the deal, broader implications for future trade pacts and ongoing economic competition between the world’s two largest economies remain uncertain. The White House appears set on pursuing further bilateral deals, with India likely to be next in line.