The pacts are also drawing comparisons to the Phase One trade deal reached during President Donald Trump’s first term. Analysts expect the investment pledges to go the way of the agricultural purchases China promised and never delivered upon, especially as the vows don’t appear to be legally binding.

President Donald Trump will make his trade deal decisions this week even as separate negotiations with China and the European Union continue, U.S. Commerce chief Howard Lutnick said on Tuesday ahead of Trump's self-imposed Aug.

The US and the EU will have zero tariffs on aircraft and their components, some chemicals, some generic drugs, some semiconductors, some agricultural products and essential raw materials. Alcoholic beverages are not included in the agreement. The 50% tariffs on steel and aluminum remain.

Asian equities were mostly higher overnight as Vietnam and Indonesia outperformed while Japan and India underperformed. Hong Kong and Mainland China were both higher overnight on high volumes as health care stocks outperformed,

The United States and China are poised to start a fresh round of talks in Sweden, aiming to extend a temporary trade truce that held back triple-digit tariffs while the world’s two biggest economies try to broker a lasting deal.

China has slowed or halted purchases of a slew of US energy and farm goods in 2025, but shipments could soar again after a US-China trade deal.

The agreement is a major step in Trump's plan to shake up global trade, which he says was weighted against America.

"The biggest piece in the trade deal puzzle still remains, and the Chinese are unlikely to be as willing to fold."