Here’s What In President Trump’s Deal With China to Cut Tariffs

Well, that was fast.

Just over six weeks since Donald Trump declared “liberation day” and announced his reciprocal tariff strategy, China has come to the bargaining table.

As part of the deal, according to the Daily Wire:

President Donald Trump’s 125% reciprocal tariff on China will be reduced to 10%, with a 20% fentanyl tariff still in place, a significant drop from the 145% tariff placed on Chinese goods in the last few weeks. China will drop its retaliatory tariffs on the United States from 125% to 10%. The reductions are to be in place by Wednesday, May 14.

China will also suspend non-tariff actions taken against the United States since April 2 such as restrictions on exports of rare earths and penalties for certain American companies.

The U.S. had a nearly $300 billion trade deficit with China in 2024, up nearly 6% from the year prior.  

Stocks jumped on the move, with the DOW surging over 1,000 points immediately after it was announced, though this figure is subject to change on a millisecond to millisecond basis.  

Treasury Secretary Scott Bessent told reporters before the details were made public that "Neither side wants a decoupling” between the two economies, and that the 90-day pause could be extended "as long as there is good faith effort, engagement, and constructive dialogue, then we will keep moving forward."

Trump also reached a deal with the United Kingdom last week.