Trump Lets China Win in Tariff War — First Round, Anyhow
by Gordon G. Chang • May 16, 2025 at 5:00 am
[T]he arrangement is a win for China.
The main barrier to American goods in China, however, is not Chinese tariffs but China's many non-tariff barriers, which are untouched by the new deal. Therefore, the tariff rollbacks benefit Chinese exporters far more than America's.
The Chinese promise is unlikely to be worth anything. The only way Xi Jinping can honor his pledge is to give up most elements of communism, because non-tariff barriers, predatory trade practices, and even theft are inherent in that system.
Trump is still hoping for robust relations with the Communist Party, but unfortunately that is not possible.
Xi cannot now admit that China needs the United States, and he certainly cannot be seen as giving in to American coercion. In fact, the Chinese regime since the tariff announcement has been crowing about its win over Trump.
On May 12, Treasury Secretary Scott Bessent, speaking to CNBC's "Squawk Box," urged a "decoupling for strategic necessities."
Yes. And "a complete decoupling," which as Trump tweeted in 2020 would remain "a policy option," would be even better. Why should Americans shovel any cash to Communist Party's coffers?
On May 12, President Donald Trump announced a "total reset with China."
"The best part of the deal," he said, was that "China agreed to open itself up to American business." Beijing, Trump proclaimed, will "suspend and remove all of its non-monetary barriers."
In the meantime, both the U.S. and China agreed to drop tariffs by 115 percentage points. The general American tariff rate on China's goods is now 30%. The general Chinese rate is 10%. Both reductions will be in effect for 90 days.
China also agreed to reverse "all the non-tariff countermeasures taken against the United States since April 2, 2025."
American tariffs in place before April 2, such as the Section 232 and Section 301 levies, remain in effect.
These moves, in sum, undo American and Chinese measures that were put in place from April 2, what Trump has called "Liberation Day."
The White House termed the arrangement "a historic trade win for the United States."
