President Donald Trump’s America First economic strategy scored another major victory as the United States and China unveiled the details of a new 90-day agreement that will dramatically reduce tariffs between the two nations—signaling a potential breakthrough in years of tense trade relations.
Under the agreement, the U.S. will cut tariffs on Chinese goods from a high of 145% to 30%, while keeping a targeted 20% tariff in place on sectors tied to fentanyl-related materials, reflecting a focused effort to pressure China on its role in the deadly opioid crisis. In return, China will slash its retaliatory tariffs on U.S. products from 125% to just 10%, a major concession from Beijing and a clear signal that the Trump administration’s hardline stance is delivering results.
The changes are set to take effect by May 14, giving American manufacturers and farmers much-needed relief, and offering global markets a jolt of confidence.
Treasury Secretary Scott Bessent noted that the agreement is part of a broader strategy to realign and protect key American supply chains in industries such as pharmaceuticals, semiconductors, and steel. He also reiterated the administration’s firm commitment to avoiding economic entanglement with China unless it benefits the American worker.
U.S. Trade Representative Jamieson Greer added that the deal includes new Chinese commitments to combat the flow of fentanyl into the United States, a deadly crisis that the Biden administration largely ignored during its tenure.
Markets reacted swiftly and favorably to the news. The Dow Jones surged more than 700 points, with the S&P 500 and Nasdaq also seeing strong gains. Investor confidence soared as the Trump-led economic team once again demonstrated its ability to leverage tough negotiations into real-world benefits for the American economy.
The agreement isn’t permanent—yet. The 90-day window is designed to allow both sides to keep negotiating toward a more comprehensive trade framework. A rotating schedule of talks is expected to continue, with future meetings planned in the U.S., China, or third-party host nations.
Ultimately, the deal showcases President Trump’s effective, results-driven leadership. While previous administrations engaged in endless diplomacy with little to show for it, Trump’s bold approach is now forcing the world’s second-largest economy to play ball.
This is more than just a trade pact—it’s a reset in U.S.-China economic relations that puts American interests first.