Trump Declares a “Total Reset” in US-China Trade Following Significant Tariff Reductions

Trump declares a “complete reset” in US-China ties following a 90-day agreement by both countries to significantly lower tariffs.

A historic deal that would see both countries drastically cut tariffs on each other’s goods for 90 days has led US President Donald Trump to declare a “total reset” in ties with China, marking a dramatic de-escalation in their long-running trade war.

Trump gave reporters at the White House a positive assessment of bilateral relations and alluded to a planned meeting with Chinese President Xi Jinping. “I don’t think we’ll ever see tariffs on China that high again,” he stated.

In a significant change in policy, the agreement reduces Chinese tariffs on US goods from 125% to 10% and cuts US levies on Chinese imports from 145% to 30%. The deal is intended to stabilize economic ties and set the stage for longer-term talks, according to White House sources.

The news was received quickly and favorably by US financial markets, as indices rose to heights not seen since the year’s start. Trump’s so-called “Liberation Day” tariffs, which were implemented in April, caused market turbulence, but this represents a notable recovery.

Economists and business analysts claim that the size of the tariff reductions surpasses initial projections, but they are still concerned about the 30% tax on Chinese imports. 

It is anticipated that the temporary relaxation of trade restrictions will offer immediate respite to American farmers and businesses who have been hardest hit by the trade dispute.