Will the New US-China Trade Deal Ease the Tariff War?

On Sunday, 11 May 2025, the White House confirmed that the United States and China had reached a new trade agreement. Treasury Secretary Scott Bessent described the recent negotiations in Geneva as 'productive' and expressed optimism about the outcome.

The announcement comes just a week after US President Donald Trump authorised a sweeping tariff policy targeting China and several other nations. The move escalated tensions between Washington and Beijing, prompting retaliatory tariffs from China and sparking fears of a prolonged trade war.

The question now is whether this new deal will bring an end to the economic standoff — or merely mark a temporary pause in ongoing trade hostilities.

New US-China Trade Deal

US Trade Representative Jamieson Greer said that the White House and Chinese officials all reached some kind of agreement. Although he didn't provide the specific details, Greed stated that the trade talks were very constructive.

'It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,' he explained via CNBC.

'We're confident that the deal we struck with our Chinese partners will help us work toward resolving that national emergency,' Greer added.

Vice Premier of the People's Republic of China He Lifeng shared positive statements as well. He told the press that the Geneva meeting over the weekend was very progressive and reached an important consensus.

Will It End the Tariff War?

The U.S. and China got into a tariff war after Donald Trump announced 145% tariffs against Beijing. In retaliation, the Chinese government also raised its levies on American goods to 125%.

The tariff conflict sparked concerns as it stirred the financial markets, leading to higher costs and fewer trading goods. With the new trade deal's arrival, the tariff war could end temporarily.

According to The Guardian, the agreement is a 90-day pause in tariff increases. Not only that, the deal will also lead to drastic tariff cuts, specifically lowering reciprocal tariffs by 115%.

This means that Chinese duties on American goods could be decreased to 10%. Meanwhile, the U.S. tax on Beijing's products will be lowered to 30%. The tariff cut for China is higher because the Trump administration already imposed a 20% rate even before the trade war started.

A commerce ministry spokesperson of China said that the agreement meets the expectations of both U.S. and Chinese manufacturers and consumers. He added that it also satisfies the two nations' interests, as well as the world's common interest.

Analysts, however, remain cautious. While the 90-day truce and planned tariff reductions signal a potential thaw in relations, many experts warn that underlying tensions persist. They point out that fundamental issues such as intellectual property rights, market access, and technology transfers have yet to be fully addressed — leaving the possibility of renewed friction once the temporary agreement expires.

'We hope that the US side will, based on this meeting, continue to move forward in the same direction with China, completely correct the erroneous practice of unilateral tariff hikes, and continually strengthen mutually beneficial cooperation,' said the Beijing official.

Critics said that the latest U.S.-China trade deal shows the mutual respect that the two countries have for each other.