US President Donald Trump has confirmed the formal signing of a trade agreement with China, marking the end of months of tense negotiations and providing a measure of stability in the often volatile relationship between the world’s two largest economies.
“We just signed with China yesterday,” Trump said during remarks at the White House on Thursday, without disclosing further details. The deal finalises the framework agreed earlier in Geneva and is seen as a key milestone in efforts to de-escalate global trade tensions.
Stephen Miran, chairman of the White House Council of Economic Advisers, told Yahoo Finance that the administration is likely to extend its current 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,” he said.
However, uncertainty lingers. Despite the softer rhetoric, Trump has repeatedly threatened to set tariff rates unilaterally, keeping trade partners on edge. Miran noted that average US tariffs are unlikely to fall below 10% in the long term, with some countries potentially negotiating exemptions and others facing the return of punitive “Liberation Day” tariffs.
Beyond China, the US has finalised a trade pact with the UK, while talks with Canada remain precarious. Prime Minister Mark Carney’s government has warned it may impose new tariffs on US steel and aluminium by late July if a deal isn’t reached. Both sides are aiming to conclude talks by mid-July.
Tensions also persist with the European Union. The bloc has warned it will retaliate if the US maintains its baseline 10% tariffs, while Trump has countered with threats of duties as high as 50% on EU imports.
As the global tariff landscape remains in flux, the China agreement offers a rare moment of clarity—but the wider standoff shows little sign of resolution.
