Trump scaled back China ambitions

Donald Trump entered office promising a harder line on China, but his administration pulled back after a rapid tariff escalation in April 2025 disrupted trade flows and sent both sides into emergency negotiations. A joint U.S.-China statement issued in Geneva on May 12, 2025 said Washington would suspend 24 percentage points of its new reciprocal tariff rate for 90 days and remove additional April tariff increases, while keeping a 10% ad valorem rate under that order in place. China said it would make matching reductions on U.S. goods and remove non-tariff countermeasures adopted after April 2, 2025. ### How far did the tariff fight go before Washington stepped back? April 2025 was the month the tariff fight peaked. According to the White House joint statement and contemporaneous reporting, the United States had raised the extra tariffs imposed this year on Chinese imports to 145% before agreeing in Geneva to reduce them. China had lifted its retaliatory duties on U.S. goods to 125% before accepting a cut to 10% for the same 90-day period. (whitehouse.gov) The Geneva deal did not erase the broader tariff architecture built over years. The May 12 statement said the United States would suspend part of the April 2 tariff action for 90 days and remove the modified rates imposed in executive orders dated April 8 and April 9, 2025, rather than unwind all China tariffs. (whitehouse.gov) ### What did the two governments actually agree to in Geneva? May 14, 2025 was the implementation date written into the joint statement. The United States said it would retain a remaining 10% ad valorem rate from the April 2 order while suspending 24 percentage points for an initial 90 days. China said it would retain a 10% additional rate on U.S. goods while suspending 24 percentage points and lifting the retaliatory tariff changes announced in two later 2025 measures. (whitehouse.gov) Scott Bessent, the U.S. Treasury secretary, and Jamieson Greer, the U.S. trade representative, were named as Washington’s lead officials for the next round of talks. He Lifeng, China’s vice premier, was named as Beijing’s representative. The statement said future discussions could be held in the United States, China or a third country, with working-level consultations as needed. (whitehouse.gov) ### Why didn’t the administration just keep pushing higher? The White House statement itself pointed to the reason for the pullback: both governments said they recognized the importance of their bilateral trade relationship and the global economy, and said continued discussions could address each side’s concerns. That language marked a move from maximal tariff escalation to a managed negotiation channel. (whitehouse.gov) U.S. trade policy did not otherwise move toward broad tariff dismantling. The Office of the U.S. Trade Representative’s tariff actions page shows the Trump administration continued to use tariffs as a central policy tool in 2025 and 2026, including new trade actions and country-specific agreements rather than a general retreat from import duties. ### What stayed in place after the rollback? (whitehouse.gov) The 10% residual rate in the Geneva statement is the clearest sign that the rollback was limited. The U.S. commitment was to suspend part of the April tariff increase, not to restore pre-April terms across the board. China’s commitment followed the same structure. (ustr.gov) Section 301 tariffs from earlier disputes also remained part of the U.S. trade system. The USTR’s China tariffs materials and Section 301 investigations page show the administration was still maintaining and expanding trade cases tied to Chinese industrial policy, semiconductors, maritime sectors and compliance with the Phase One agreement. ### Who handles the next step from here? (whitehouse.gov) He Lifeng, Scott Bessent and Jamieson Greer were the named officials assigned to carry the process forward after Geneva. The May 12 joint statement said the two sides would establish a mechanism for continued discussions on economic and trade relations, with meetings to rotate between the two countries or a third location. The first concrete milestone in that arrangement was May 14, 2025, when both governments said the tariff changes would take effect. (ustr.gov) (whitehouse.gov)