The Trump administration has reached a key deal in its ongoing trade war against China.
Early Monday morning, the U.S. and China released a joint statement revealing that “the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff,” according to the White House.
The U.S. imposed tariffs as high as 145% on Chinese goods earlier this year as the president looks to bring parity to the nation’s chronic trade deficit with foreign countries.
The move was confirmed by Treasury Secretary Scott Bessent, who told reporters: “The consensus from both delegations this weekend was neither side wants a decoupling.”
Bessent also praised Chinese officials for engaging seriously on fentanyl, saying it was “the first time the Chinese side understood the magnitude of what is happening in the US.”
Secretary of the Treasury Scott Bessent: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks. First, I want to thank our Swiss host. The Swiss government has been very kind in providing us this wonderful venue, and I think that led to a great deal of productivity we’ve seen. We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”
The truce peels back some of the harshest duties imposed under President Donald Trump’s April tariff hike, which sent U.S. levies on Chinese goods to 125%. China hit back with countermeasures and restricted key mineral exports, rattling global supply chains. Under the new agreement, Chinese tariffs drop to 10%, while U.S. tariffs fall to 30% — though the 20% fentanyl-related tariff remains untouched.
China’s commerce ministry called the move a win for “producers and consumers in both countries,” urging Washington to “completely correct” its unilateral trade posture.
The trade negotiations come as President Trump is slated to depart Washington, D.C., on Monday for visits to Saudi Arabia, Qatar and the United Arab Emirates. The president disclosed last week, when Canadian Prime Minister Mark Carney visited the White House, that he would be making “a very, very big announcement” ahead of his departure for the Middle East, but has not shared additional details.
