US-China Trade Deal Near Agreement on Reducing Trade Deficit

On May 12, in a joint statement, the United States and China recognized the importance of their bilateral economic and trade relationship to the global economy. Both countries acknowledged the need for a stable, long-term, and mutually beneficial partnership.

As part of the agreement, both nations will roll back previously imposed mutual tariffs for an initial period of 90 days. During this time, China will impose a 10% tariff on U.S. goods, while the United States will apply approximately 30% tariffs on Chinese imports.

The joint statement confirmed that the two sides reviewed their recent discussions and agreed that ongoing dialogue has the potential to address each side’s economic and trade concerns. To facilitate this, they will establish a formal mechanism for continued economic and trade negotiations.

Representing China will be State Council Vice Premier He Lifeng. The U.S. delegation will be led by Treasury Secretary Scott Bessent and United States Trade Representative Jamieson Greer. The talks may be held alternately in China and the U.S., or in a third country as mutually agreed. Working-level consultations may be held as needed on specific trade and economic issues.

Previously, U.S. President Donald Trump had imposed reciprocal tariffs on many countries with which the U.S. had trade deficits. He later paused tariffs for 90 days after several countries initiated trade agreement discussions with his administration. Starting from April 9, a baseline tariff of 10% was applied to all countries. For China, tariffs were suggested to increase up to 245%, while Chinese tariffs on U.S. goods stood at 125%.

In his second term, President Trump has reiterated his stance on tariff reciprocity, stating that the U.S. will match tariffs imposed by other nations, including India, to ensure fair trade practices.