BANGKOK (AP) — In a significant development, President Donald Trump announced that the United States and China have finalized a new trade agreement. This announcement comes as negotiations with India are also expected to yield fruitful outcomes in the near future.

Details of the Agreement Remain Sparse

Commerce Secretary Howard Lutnick confirmed the signing of the trade deal during an interview with Bloomberg TV, indicating that the agreement was signed earlier this week. However, both Lutnick and Trump refrained from offering specific details regarding the terms of the new pact.

“We just signed with China the other day,” Trump stated late Thursday, while Lutnick added that the deal had been “signed and sealed” just two days earlier.

Clarification on Preceding Agreements

It remains uncertain whether this agreement differs from the one Trump announced two weeks prior, which aimed to facilitate American industries’ access to vital magnets and rare earth minerals. This earlier pact was critical in allowing trade discussions to proceed and included a stipulation for the U.S. to halt efforts to revoke visas for Chinese nationals studying in the U.S.

China’s Position on Export Regulations

According to China’s Commerce Ministry, the two nations have “further confirmed the details of the framework,” but the statement did not specifically mention U.S. access to rare earths. The ministry noted, “China will approve the export applications of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly.” They expressed hope for mutual cooperation moving forward.

Background of Recent Trade Talks

The latest agreement follows initial discussions held in Geneva in May, which helped both countries postpone drastic tariff increases that threatened to hinder trade. Subsequent talks in London set a framework for ongoing negotiations, which the latest deal appears to formalize.

“The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal,” Lutnick asserted.

China’s Acceleration on Rare Earth Exports

While no new agreements have been publicized by China recently, the country has announced it is accelerating the approval process for export licenses related to rare earths. These materials are essential for numerous high-tech applications, including electric vehicles. Beijing’s limitations on rare earth exports have catalyzed significant tensions in trade discussions.

Addressing the Fentanyl Crisis

In a related move, China has also made strides regarding the fentanyl issue, recently announcing the designation of two additional precursor chemicals as subject to production, transportation, and export regulations. Trump has emphasized the need for Beijing to take stronger action against the flow of these chemicals to Mexican drug cartels, which use them to manufacture fentanyl that is sold in the U.S. This issue has contributed to the existing tariffs, with a substantial 20% tax on Chinese imports currently in effect.

The Economic Impact of Trade Policies

The agreement reached in Geneva in May included provisions for both nations to scale back punitive tariff increases that escalated the ongoing trade war. However, some higher tariffs, particularly regarding fentanyl and duties on aluminum and steel, remain intact. These fluctuating policies are taking a toll on both economies.

Recent data indicates that the U.S. economy contracted at an annual rate of 0.5% from January to March, partially due to a surge in imports as businesses sought to acquire foreign goods ahead of potential tariffs. In China, factory profits fell over 9% compared to the previous year in May, with the automotive sector notably impacted.

Future Trade Prospects

Trump and several U.S. officials have signaled optimism regarding future trade agreements with various countries, including India. “We’re going to have deal after deal after deal,” Lutnick reiterated.