Historic Trade Deal Secured: Trump Administration Reaches Agreement with China
In a significant breakthrough, the Trump administration has secured a historic trade deal with China, marking a major win for the United States. According to a fact sheet released by the White House, the agreement will see China reduce its tariffs and eliminate retaliation, while the US will retain a baseline tariff on China and set a path for future discussions to open market access for American exports.
The deal was reached after successful negotiations between the two nations in Geneva, Switzerland, and has been hailed as a major achievement by the Trump administration. As noted in the White House fact sheet, "Today, the United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland." Both parties have affirmed the importance of the critical bilateral economic and trade relationship between the two countries and the global economy.
The agreement comes as a welcome relief to American workers and businesses, who have long been impacted by China’s unfair trade practices and the massive trade deficit between the two nations. The US goods trade deficit with China was $295.4 billion in 2024, the largest with any trading partner. As stated in the White House fact sheet, "For too long, unfair trade practices and America’s massive trade deficit with China have fueled the offshoring of American jobs and the decline of our manufacturing sector."
Under the terms of the agreement, both nations will lower tariffs by 115%, while retaining an additional 10% tariff. Other US measures will remain in place. China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the US since April 2, 2025. The Chinese government will also suspend its initial 34% tariff on the US, announced on April 4, 2025, for 90 days, but will retain a 10% tariff during the period of the pause.
In return, the US will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs. The US will also suspend its 34% reciprocal tariff imposed on April 2, 2025, for 90 days, but retain a 10% tariff during the period of the pause.
The agreement marks a significant shift in the Trump administration’s approach to trade policy, which has prioritized a tough, uncompromising stance on China to protect American interests and stop unfair trade practices. As noted in the White House fact sheet, "Unlike previous administrations, President Trump took a tough, uncompromising stance on China to protect American interests and stop unfair trade practices." The deal also demonstrates President Trump’s expertise in securing deals that benefit the American people, as he himself has stated.
The agreement also addresses the ongoing fentanyl crisis, with both nations committing to take aggressive actions to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America. The US and China will establish a mechanism to continue important discussions about trade and economics, with the US goods trade deficit with China set to be addressed.
The talks will be led by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative, with China represented by He Lifeng, Vice Premier of the State Council. As stated in the White House fact sheet, "Today’s agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, farmers, and businesses."
The deal has been welcomed as a major achievement by the Trump administration, with the President himself hailing it as a "win" for the United States. According to the White House fact sheet, "This trade deal is a win for the United States, demonstrating President Trump’s unparalleled expertise in securing deals that benefit the American people."
The agreement comes on the heels of a brand-new deal with the United Kingdom, and marks a significant milestone in the Trump administration’s efforts to rebalance trade relationships and promote fair trade practices. As noted in the White House fact sheet, "When these changes come into effect, both nations agreed to establish a mechanism to continue important discussions about trade and economics."
The impact of the deal on American workers and businesses is expected to be significant, with the potential to create jobs and stimulate economic growth. As stated in the White House fact sheet, "The 10% tariff continues to set a fair baseline that encourages domestic production, strengthens our supply chains and ensures that American trade policy supports American workers first, instead of undercutting them."
The deal is also expected to have a positive impact on the global economy, with the potential to promote fair trade practices and reduce trade tensions between the US and China. As noted in the White House fact sheet, "The United States and China will take aggressive actions to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America."
In conclusion, the historic trade deal secured by the Trump administration with China marks a major win for the United States, demonstrating President Trump’s expertise in securing deals that benefit the American people. The agreement has the potential to promote fair trade practices, reduce trade tensions, and stimulate economic growth, and is a significant milestone in the Trump administration’s efforts to rebalance trade relationships.
The terms of the agreement will come into effect by May 14, 2025, with both nations committed to implementing the changes and continuing discussions on trade and economics. As stated in the White House fact sheet, "Today’s agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, farmers, and businesses."
Source: https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-a-historic-trade-win-for-the-united-states/
