US-China Tariff Rollback: Turning Point or Temporary Truce?

By Elouanes Soualili | Tictac24 Politics & Economy | May 12, 2025

In a rare display of economic diplomacy, the United States and China have agreed to roll back punitive tariffs that once defined one of the most combative trade standoffs in modern history. This 90-day tariff truce, announced following negotiations in Geneva, marks a significant shift in global trade dynamics. But is it a genuine turning point — or merely a pause before the next escalation?

What’s in the Deal?

Under the new agreement:

• The United States will reduce tariffs on a range of Chinese goods from 145% down to 30%.

• China will respond by lowering its tariffs on American products from 125% to 10%, with key industries like agriculture, tech components, and automobiles among the primary beneficiaries.

Negotiations were led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, alongside Chinese Vice Premier He Lifeng. Both parties emphasized a shared interest in preventing “economic decoupling” and promoting a framework for sustainable bilateral trade.

Market Reaction: Relief and Rally

Markets responded swiftly and positively:

• The Dow Jones surged over 300 points on Monday.

• Commodity prices — particularly soybeans and copper — climbed on hopes of renewed trade flows.

• Tech stocks, deeply affected by earlier tariffs, also saw strong gains.

Expert Insight:

“The rollback provides short-term breathing room, but long-term trust remains fragile,” said Dr. Amanda Reynolds, senior economist at the Brookings Institution.

Trump’s Reaction: Strategic or Sabotage?

Former President Donald Trump, whose administration imposed many of the tariffs now being lifted, was quick to condemn the agreement.

In a post on Truth Social, Trump described the deal as “a total surrender to Beijing,” accusing the Biden administration of “undoing hard-fought leverage built over four years.”

While Trump no longer holds office, his voice still resonates within the GOP — especially as speculation mounts over a potential 2028 comeback.

Political Risks and Opportunities

The rollback poses both risks and rewards for the Biden administration:

• Pros: Eases inflationary pressure, boosts investor confidence, and opens the door to diplomacy.

• Cons: Could be framed as weak or appeasing by Republican opponents, especially during the 2026 midterms and beyond.

For China, the deal improves its global image at a time when it seeks to attract foreign investment and rebuild credibility after years of post-COVID economic instability.

What Comes Next?

Although the rollback is a positive gesture, it remains temporary. Both countries have agreed to:

• Resume high-level trade talks every 30 days.

• Establish a dispute resolution mechanism to avoid sudden tariff hikes.

• Work on longer-term issues such as intellectual property, forced technology transfers, and digital trade regulations.

Final Thoughts: Stability or Stalemate?

This agreement reflects a temporary alignment of interests, not necessarily a resolution of deeper conflicts. As global markets watch closely, the coming months will reveal whether Washington and Beijing can move from tactical compromise to lasting cooperation.

"Explore the latest US-China tariff rollback agreement, Trump's reaction, economic impacts, and what it means for global trade and 2028 politics."