After two days of talks in Geneva, the US and China today announced a temporary trade truce. For 90 days starting May 14, both countries will sharply reduce tariffs on most goods. US tariffs on Chinese imports will drop from a staggering 145% to 30%, while China will cut its own duties on American products from 125% to 10%. Key sectors—steel, aluminum, and automobiles—are excluded, with 25% tariffs still in place for all US partners.This deal, however, isn’t a fresh start—it’s a step back for the US, says Ajay Srivastava, founder of the Global Trade Research Initiative. US President Donald Trump, during his first term, began a tariff war with China in March 2018, promising to fix the trade deficit, bring back manufacturing, and slow China’s industrial rise. None of that happened. Instead, the tariffs hurt American businesses, pushed up prices for consumers, disrupted global supply chains, and widened the US trade deficit.
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