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American Focus > Blog > The White House > President Donald J. Trump Secures a Historic Trade Win for the United States – The White House
The White House

President Donald J. Trump Secures a Historic Trade Win for the United States – The White House

Last updated: May 12, 2025 4:50 am
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President Donald J. Trump Secures a Historic Trade Win for the United States – The White House
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SEALING A SIGNIFICANT TRADE PACT:

In a move that could be described as both historic and strategically timed, President Donald J. Trump has successfully brokered a new agreement with China, shortly after finalizing a deal with the United Kingdom. This new accord aims to lower Chinese tariffs while eliminating retaliatory measures, maintaining a foundational U.S. tariff on Chinese goods, and paving the way for future dialogues aimed at enhancing market access for American exports.

  • For the first time in years, the United States and China have issued a joint statement on trade, following fruitful negotiations held over the weekend in Geneva, Switzerland.
  • Both nations underscored the significance of their economic partnership, not just for themselves but for the global marketplace.
  • The chronic issue of unfair trade practices and the substantial trade deficit with China has long been a thorn in the side of American industries, leading to job offshoring and a weakened manufacturing base.
  • The agreement calls for a mutual reduction of tariffs by 115%, while still keeping an additional 10% tariff in place. Other existing U.S. trade measures will remain unchanged.
  • These changes are set to be implemented by May 14, 2025.
  • This trade agreement is framed as a victory for the United States, showcasing President Trump’s distinct ability to secure beneficial arrangements for American citizens.

CHINESE COMMITMENTS:

In a reciprocal gesture, China has agreed to eliminate the retaliatory tariffs it introduced starting April 4, 2025, and will also suspend or withdraw non-tariff measures taken against the U.S. since April 2, 2025.

  • China will pause its initial 34% tariff on American goods announced on April 4, 2025, for a duration of 90 days, while still maintaining a 10% tariff during this interim period.

AMERICAN RESPONSES:

The United States will retract additional tariffs imposed on China on April 8 and April 9, 2025, but all tariffs instituted before April 2, 2025, will remain, including Section 301 tariffs, Section 232 tariffs, and those enacted in response to the fentanyl crisis under the International Emergency Economic Powers Act.

  • The U.S. will also suspend its reciprocal 34% tariff from April 2, 2025, for 90 days, retaining the 10% tariff throughout this period.
  • This 10% tariff establishes a fair baseline aimed at bolstering domestic production, fortifying supply chains, and ensuring that American trade policy prioritizes American workers rather than undermining them.
  • By implementing reciprocal tariffs, President Trump aims to align trade policy with the needs of the American economy, address the ongoing trade deficit, and create a level playing field for American producers.
  • In stark contrast to previous administrations, President Trump has adopted a firm stance toward China, focusing on safeguarding American interests and countering unfair trade practices.

WORKING TOWARD ECONOMIC BALANCE:

Once these adjustments are in effect, both countries have agreed to create a framework for ongoing discussions about trade and economic policy.

  • In 2024, the U.S. goods trade deficit with China reached $295.4 billion, the highest with any single trading partner.
  • This agreement aims to correct these disparities, promising tangible benefits for American workers, farmers, and businesses.
  • As these discussions progress, China will be represented by He Lifeng, Vice Premier of the State Council.
  • The United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

COMBATING THE FENTANYL CRISIS:

Both nations are committed to taking decisive action to curb the flow of fentanyl and its precursors from China to illicit drug manufacturers in North America.

See also  Message on National Nurses Day, 2025 – The White House
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