China tariff truce shows the US did not necessarily have the upper hand
US and China Agree 90-Day Tariff Truce, Cut Rates by 115%
As reported by the BBC, the US and China have agreed to a 90-day pause in their trade war, slashing tariffs on each other’s goods by 115%, treasury secretary Scott Bessent announced in Geneva.
A success
The deal marks a major de-escalation after last month’s spike, when US tariffs hit 145%—including extra duties targeting fentanyl—while China responded with 125% tariffs. Bessent said the talks were respectful and emphasized both sides’ shared goal of balanced trade.
Relief for the world
While a deal between the US and China is great news for global markets, experts warned that a trade war between the commerce giants could have adverse effects worldwide.
Who had the upper hand?
Both parties moved toward an understanding a few weeks after President Trump imposed a 145% tariff on Chinese imports, which the country retaliated against. The American side had to backtrack the most.
Who suffered more?
President Trump said children in America might "have two dolls instead of 30 dolls," a statement that earned him the nickname "two doll Don" on social media. Trump claimed despite this hardship China would suffer more from the trade war. He might have been wrong.
Lowering tariffs
His backtracking actions over the tariffs were a sign that he might have been wrong. Quickly after announcing them, the president excluded electronics, and hours before negotiations, he said they should fall to 80%.
Data
Still, the most telling fact was China's export numbers, published the day before negotiations started. It was the country's first official data on the subject this year.
A drop in exports to the US
According to the Wall Street Journal, April exports from China to the US dropped 21% compared to 2024. The White House's high tariffs stopped part of the flow of goods between the countries.
An overall growth
However, China's exports grew 8.1% during that month compared to last year. The American losses were offset by an increase in goods exchanges with other regions.
New destinations
The WSJ said China's exports to Southeast Asia grew 21%. They increased by 16% to Latin America, 25% to Africa, and 8.3% to the European Union. The tariffs quickly shifted global markets.
Overall US exports
According to the WSJ, a March surge in exports to the US, likely related to an import spree to avoid tariffs, compensated some of the losses.
