President Donald Trump’s declaration that “we just signed with China yesterday” has injected fresh uncertainty into the already fragile trade détente efforts. While Beijing’s Commerce Ministry on Friday outlined a framework—China will accelerate approvals for rare-earth exports and Washington will lift unspecified “restrictive measures” —no comprehensive text or joint communiqué has been released by either capital.
A White House aide attempted to clarify, saying the two sides reached “an additional understanding” on how to implement May’s Geneva consensus. That earlier pact paused most bilateral tariff hikes for 90 days but later stalled when Beijing slowed moves to loosen rare earth curbs and Washington tightened tech export and student visa rules.
Commerce Secretary Howard Lutnick insists the agreement is “signed and sealed,” yet provided no specifics beyond rare earth licensing. Beijing’s statement likewise omitted scope, duration, and enforcement mechanisms.
This comes weeks after Trump claimed that the “deal with China is done” and is up for approval by both leaders of the countries. In this, he claims that the US will pocket a 55% tariff windfall deserves scrutiny.
Economic urgency underpins the rhetoric. US GDP contracted at a 0.5% annualized rate in Q1 as companies front-loaded imports to dodge potential tariffs, while Chinese factory profits slid 9% year over year in May amid sputtering auto sales.
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