China Rolls Back Rare Earth Controls, Ends Chip Firm Probes

The US trade deficit narrowed to $73.3 billion in June 2026 from $77.6 billion in May, broadly in line with market expectations, as imports declined more sharply than exports. Imports were down 1.8% to $388.0 billion, driven by lower purchases of capital goods and consumer goods, particularly computers and pharmaceuticals, while services imports edged higher. Exports fell 0.9% to $314.7 billion, reflecting weaker shipments of industrial supplies, including crude and fuel oil, and capital goods, although services exports increased on stronger financial services and travel. In the first half of 2026, the cumulative trade gap narrowed to $371.2 billion, down from a record $560.5 billion a year earlier, suggesting that US trade flows are gradually normalizing following last year's tariff announcements and the front-loading of imports that preceded them, although uncertainty over US trade policy remains.

The Trump administration announced new tariffs of 10% to 12-1/2% on imports from about 60 U.S. trading partners, replacing the temporary 10% tariffs that expire Friday. The new duties will apply to nearly all U.S. imports, with the administration arguing that the targeted countries have failed to adequately prohibit or enforce restrictions on goods produced with forced labor. Economies with partial bans on forced labor or commitments to strengthen them, including the UK, Canada, Mexico, and India, will face 10% tariffs. Meanwhile, countries deemed to have insufficient safeguards, such as China, South Korea, and Japan, will be subject to 12-1/2% duties. Products already covered by sector-specific or national security-related tariffs are exempt. The move reflects the administration's broader strategy to restore its global tariff agenda after the Supreme Court struck down its earlier tariff framework in February.

The United States and Jordan signed the U.S.-Jordan Agreement on Reciprocal Trade, a landmark deal aimed at deepening economic ties and strengthening supply chain cooperation. U.S. Trade Representative Jamieson Greer and Jordanian Industry, Trade, and Supply Minister Yarub Qudah inked the accord, which preserves Jordan’s duty-free market access for nearly all U.S. exports. Jordan pledged to bolster its trade framework by enforcing environmental rules, strengthening labor protection, improving intellectual property rights, ensuring fair practices, and streamlining customs procedures. The pact also commits Jordan to removing non-tariff barriers and expanding market access for U.S. goods, including farm products and motor vehicles. Beyond trade, both countries vowed to reinforce economic and security cooperation by coordinating on investment screening, export controls, combating duty evasion, and countering non-market policies from third countries.