It all sounds wonderful. On May 11, 2025, President Trump announced a “total reset” in the U.S. relationship with China. Instant transmogrification.
We hear that China and the U.S. have now agreed to substantially reduce tariffs for a period of 90 days, during which further negotiations and finetuning of details will occur. For now, the United States will continue to impose a 30% tariff, down from 145%, on Chinese goods. The 30% consists of a 20% penalty for the still-happening flow of fentanyl from China plus the 10% base tariff being imposed on the imports of all countries.
Continuities
Reuters notes that “Tariffs imposed before April 2, including those dating back to U.S. President Donald Trump’s first term, and other restrictions, such as the U.S. measures to end low-value package tariff exemptions, known as the ‘de minimis’ rule, appear to remain.”
The countries’ May 12, 2025 joint statement also provides for “a mechanism to continue discussions about economic and trade relations.”
Trump says that China has also “agreed they’re going to stop” shipping fentanyl to the U.S. Wait a minute though. China’s stemming of the tide of fentanyl precursors—didn’t the Chinese dictator, Xi Jinping, conclude a solemn pact about that with former President Biden?
Anyway, markets are buoyant. “The S&P 500 is up roughly 2.6%, the Dow by about 2.5% and the Nasdaq by more than 3.3%,” the BBC reports.
“The best part of the deal,” Trump says, is China’s willingness “to open itself up to” American imports.
China agrees to agree
A spokesman for the Chinese side says that the joint statement issued by the two countries is “an important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”
Trade negotiator for China Li Chenggang says, “We are happy to engage in intensive dialogue and equal-footed consultation, manage our differences, tap into the potential of the cooperation, expand the collaborative outcome, and make the pie of mutual benefits bigger.”
Everything is as it always was, then. The Chinese government, always friendly and reasonable before, will continue to be friendly and reasonable, which we can easily see if we ignore all aspects of its nature and practices and attend only to words like “cooperation…collaborative outcome…pie of mutual benefits….”
After weeks of suspense, everything is happening fast and furious. And everything is…fine?
Also see:
The White House: Joint Statement on U.S.-China Economic and Trade Meeting in Geneva
