The United States and China are back at the negotiating table. But this time, it’s under much different terms than during the Biden years.
On May 12, both countries agreed to ease some of the harsh tariffs they’ve placed on each other over the past few months.
For now, the U.S. is suspending 24% of its new tariffs on Chinese goods for 90 days but keeping a 10% tariff in place. China is doing the same.
— Rapid Response 47 (@RapidResponse47) May 12, 2025
While this might sound like a small step, it’s actually a big shift in how the U.S. is handling trade with China.
The Biden administration spent years asking China nicely to live up to its promises from the 2020 “Phase One” trade deal.
Those promises included buying $200 billion in American goods. China didn’t follow through.
Treasury Secretary Scott Bessent says that’s because the Biden administration didn’t back up its words with action.
BREAKING: China said they ignored their trade commitments under Biden because they knew he was weak, says Treasury Secretary Scott Bessent. pic.twitter.com/DjusGjlBeV
— Leading Report (@LeadingReport) May 12, 2025
Trump’s Strategy: Lead with Strength
Since coming back into office, President Trump has gone back to the strategy that started during his first term—putting tough tariffs on Chinese goods to level the playing field.
In just a few weeks this spring, Trump’s team hit China with several new tariffs. China quickly responded with their own tariffs on American products.
Some saw this as a dangerous trade war, but Trump’s approach, according to his team, is about more than short-term pain.
It’s about forcing China to respect U.S. trade rules and protecting American workers, farmers, and companies.
Scott Bessent, a former hedge fund manager known for his aggressive financial style, is now leading the U.S. side in these talks, alongside U.S. Trade Representative Jamieson Greer. China’s side will be led by Vice Premier He Lifeng.
Both sides have agreed to keep the conversation going, alternating meetings between China, the U.S., or even a neutral country if needed.
.@SecScottBessent: “I would say one of the big takeaways from this weekend — the United States will continue a strategic rebalancing in many areas that were exposed as supply chain weaknesses during COVID, whether it’s medicines, whether it’s semiconductors, steel… We will… pic.twitter.com/ift5jLlBEZ
— Rapid Response 47 (@RapidResponse47) May 12, 2025
A Different Kind of Deal
Unlike past negotiations, this one starts with the U.S. holding firm on its demands and using tariffs as leverage, not as a last resort.
China, for its part, will also remove some of its added tariffs and drop other non-tariff penalties it put on U.S. businesses earlier this year.
Critics of Trump’s approach say tariffs can backfire, raising prices for American consumers. But supporters argue that doing nothing is worse, pointing to Biden’s years of talk and no action as proof.
Under Biden, inflation soared, trade deficits grew, and China kept right on ignoring the rules.
This new deal may not fix everything overnight, but it’s a step toward holding China accountable. And the Trump team says they won’t back down until American interests come first.
What Comes Next?
The U.S.-China trade relationship isn’t exactly easy. Both sides have a lot at stake, and the past few years have been filled with broken promises.
But this time, the U.S. is sending a clear message: fair trade isn’t optional. If China wants access to U.S. markets, they’ll need to play by the rules.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
