On Monday, President Donald Trump declared that China has consented to allow greater access for American businesses as a result of trade negotiations held between Washington and Beijing on Saturday.
On Monday, Trump informed reporters at the White House that the agreement was probably the most important advancement resulting from the trade negotiations.
On Saturday, Treasury Secretary Scott Bessent initiated trade negotiations with China in Geneva, resulting in a 90-day agreement for tariff relief.
Furthermore, as of yesterday, we have successfully reset our relations with China. Following fruitful discussions in Geneva, both parties have consented to lower the tariffs enacted after April 2nd to 10 percent for a duration of 90 days, while negotiations persist on the most significant structural matters,” Trump stated in the Oval Office.
I would like to convey a few points. Firstly, this does not account for the existing tariffs that we have implemented, nor does it encompass tariffs on automobiles, steel, aluminum, or potential tariffs on pharmaceuticals. Our objective is to encourage the return of the pharmaceutical industry to the United States, and we are already witnessing a trend of their return, influenced by these tariffs,” Trump stated.
On Sunday, the White House released information regarding a potentially landmark trade agreement with China, the second-largest economy globally, following President Trump’s implementation of a series of severe tariffs designed to recalibrate the economic relationship between the two countries.
Today, following the recent agreement with the United Kingdom, President Donald J. Trump has finalized a deal with China aimed at lowering tariffs imposed by China, ceasing retaliatory measures, maintaining a baseline tariff from the U.S. on China, and establishing a framework for future negotiations to enhance market access for American exports, according to a statement in a ‘fact sheet’ released after two days of discussions in Geneva, Switzerland.
For an extended period, inequitable trade practices and the substantial trade deficit between the United States and China have contributed to the outsourcing of American jobs and the deterioration of our manufacturing industry,” the statement continued. “In finalizing an agreement, both the United States and China will reduce tariffs by 115%, while maintaining an extra 10% tariff. Additional measures from the U.S. will stay in effect.
The announcement indicates that both countries will implement the new measures on Wednesday, May 14. Currently, the tariff reduction is set for a duration of 90 days; nevertheless, the positive news was sufficient to propel the Dow Jones up by 1,000 points at the market’s opening on Monday.
According to the fact sheet, China will eliminate the retaliatory tariffs implemented since April 4, 2025, and will also suspend or revoke the non-tariff countermeasures enacted against the United States since April 2, 2025. Furthermore, China will temporarily suspend its initial 34% tariff on the United States, which was announced on April 4, 2025, for a duration of 90 days, while maintaining a 10% tariff throughout this pause.
The United States plans to eliminate the extra tariffs it placed on China on April 8 and April 9, 2025; however, it will keep all duties that were imposed on China before April 2, 2025. This includes Section 301 tariffs, Section 232 tariffs, tariffs related to the fentanyl national emergency declared under the International Emergency Economic Powers Act, and Most Favored Nation tariffs. Additionally, the U.S. will suspend its 34 percent reciprocal tariff during this period.
The fact sheet indicated that both parties will persist in discussions regarding a long-term agreement following the commencement of the 90-day period.
The accord also tackles the fentanyl epidemic in the United States, which Trump and his predecessors have partially attributed to China for providing drug-manufacturing resources to cartels in Mexico that subsequently transport the final product across the border.
The discussions may take place alternately in China and the United States, or in a mutually agreed third country. Additionally, the two parties may hold working-level consultations on pertinent economic and trade matters as necessary, according to a joint statement from Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.
