On June 27, 2025, U.S. Commerce Secretary Howard Lutnick announced on Bloomberg TV that the United States and China had signed a new trade agreement two days prior. President Donald Trump confirmed the deal, stating it was “done,” though specific details remain undisclosed.
The agreement follows earlier discussions in Geneva and London, aiming to ease bilateral retaliatory tariffs that had reached significant levels. While the deal suggests progress, key issues such as U.S. access to China’s rare earth exports—critical for high-tech industries—remain unaddressed.
Despite the agreement, the U.S. maintains a 55% tariff on Chinese imports, comprising a 10% baseline “reciprocal” tariff, a 20% tariff related to fentanyl trafficking, and a 25% tariff from previous measures. China, in turn, imposes a 10% tariff on U.S. goods.
The deal also includes provisions for China to expedite approvals for rare earth exports and for the U.S. to allow Chinese students to study in American universities. However, many specifics and implementation details remain unclear, leaving the full impact of the agreement to be seen.
