Related Articles
-Editorial
The United States and China have reached a significant new trade agreement aimed at de-escalating recent tariff escalations, restoring economic dialogue, and addressing long-standing trade imbalances. The announcement follows successful negotiations over the weekend in Geneva, Switzerland, marking the first joint trade statement issued by both nations in several years.
The agreement comes just days after President Donald J. Trump finalized a separate trade accord with the United Kingdom, further expanding his administration’s efforts to reshape global trade relationships. According to U.S. officials, the deal with China will reduce tariffs, eliminate recent retaliatory measures, and establish a framework for future economic cooperation.
Under the terms of the agreement, both countries will reduce tariffs by 115% from recent escalated levels while retaining a baseline 10% tariff on goods exchanged. These changes are set to take effect by May 14, 2025. The United States will suspend additional tariffs imposed on April 8 and 9, 2025, while keeping pre-existing duties in place, including those related to Section 301, Section 232, and tariffs tied to the fentanyl national emergency declared under the International Emergency Economic Powers Act.
In parallel, China has agreed to remove retaliatory tariffs and non-tariff countermeasures enacted since early April 2025. It will suspend a 34% tariff announced on April 4 for a period of 90 days, though a 10% tariff will remain during this period.
U.S. officials described the deal as a step toward “rebalancing” the economic relationship with China. In 2024, the U.S. goods trade deficit with China stood at $295.4 billion—the largest such gap with any trade partner. The new framework is designed to support domestic manufacturing, encourage supply chain resilience, and prioritize the interests of American workers and producers.
As part of the agreement, the two countries will establish a bilateral mechanism for continued discussions on trade and economic matters. The United States will be represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. China’s representative will be He Lifeng, Vice Premier of the State Council.
Additionally, the agreement includes measures to combat the illicit flow of fentanyl and its chemical precursors from China to North America, a growing concern linked to the opioid crisis in the United States.
The White House described the agreement as a “significant victory” for the U.S. economy, emphasizing President Trump’s commitment to assertive trade policies and economic fairness. Administration officials maintain that these measures are necessary to counteract the effects of decades of trade deficits and the offshoring of American jobs.
The implementation and outcomes of the deal will be closely watched by international markets, U.S. industries, and policymakers, as both nations prepare for further negotiations on market access and economic cooperation.