US President Donald Trump has baffled everyone once again. He made some concessions to China regarding certain tariffs, although there are some exceptions. The White House leader stated that US tariffs on cars, steel, and aluminum imports from China would not be softened.
The agreements between Washington and Beijing to reduce mutual tariffs, reached in the first half of May, do not affect the previous tariffs imposed by Trump’s administration. According to the US president, this applies to tariffs on imports of new cars, steel, and aluminum from China. The tariffs on these goods will remain the same—25% of the customs value. An exception may be made for tariffs on Chinese pharmaceutical products. "The agreements with China do not include tariffs that have already been imposed," Donald Trump concluded.
The American president defines the recent bilateral talks as productive, resulting in tariff agreements. "We have achieved a complete reset of relations with China," emphasized the White House leader. The three-month pause in tariffs, according to the American leader, is necessary for both sides to find a compromise solution on mutual tariffs. "Negotiators are now working on the largest structural issues in bilateral trade," Donald Trump noted.
Earlier, US Treasury Department Secretary Scott Bessent stated that the sharp reduction in mutual tariffs was due to the countries' intention to balance bilateral trade. The new tariffs came into effect on Wednesday, May 14. During the 90-day pause, US tariffs on Chinese products will be slashed from 145% to 30%, while China's tariffs on American goods will be decreased from 125% to 10%. During this time, Washington and Beijing are expected to nail down a trade deal that will satisfy both sides, Donald Trump said.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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