On May 12, the negotiations between the United States and China concluded in Switzerland, resulting in a preliminary agreement on tariff reductions. While the agreement has been portrayed as a diplomatic breakthrough by both sides, the long-term trajectory of US-China relations remains uncertain.
According to the terms of the agreement, both countries will implement partial tariff rollbacks. Several tariff restrictions will be suspended for a 90-day period beginning May 14, pending the conclusion of a comprehensive deal. Specifically, the additional tariffs introduced during the Trump administration on Chinese imports will be reduced from 145% to 30%, while China will lower its tariffs on US goods from 125% to 10%.
Despite this progress, many trade barriers remain in place. President Donald Trump stated on Monday that tariff reductions would exclude key sectors such as automobiles, steel, and aluminum. He emphasized that one of the primary objectives for future negotiations would be expanding American business access to the Chinese market.
The two sides have presented divergent interpretations of the agreement. The White House described the outcome as a “victory” for the Trump administration. In contrast, Chinese officials framed the deal as a result of Beijing’s firm negotiating stance. During a meeting on May 13 with representatives from Latin America and the Caribbean, including Brazil, Colombia, and Chile, President Xi Jinping remarked, “There are no winners in a tariff or trade war. Bullying or hegemonism only leads to self-isolation.”
China’s Ministry of Commerce issued a formal statement describing the agreement as being “in the interests of both countries and the common interests of the world.” Nonetheless, in a parallel development, Chinese government agencies, including the Ministries of Commerce and State Security, reportedly discussed plans to introduce tighter controls on the export of strategic minerals.
While the agreement marks a step forward in de-escalating trade tensions, the underlying geopolitical and economic rivalries between Washington and Beijing remain unresolved.
