Published 12/05/2025 11:04 | Edited 12/05/2025 13:27
After two days of negotiations in Geneva, Switzerland, China and the United States announced on Monday (12) a retreat coordinated in the tariffs that were intensifying the trade war between the two largest economies in the world. The agreement drastically reduces the charges imposed since April and exposes the unilateral tariff strategy adopted by US President Donald Trump since his return to the White House.
The agreement provides that the US reduces rates on Chinese products from 145% to 30% for a period of 90 days, while China will decrease its rates from 125% to 10% in the same period. In addition, both countries have pledged to suspend additional non -tariff measures implemented since April.
The new truce occurs amid growing signs of economic wear and tear in the United States. The US currency has devalued more than 8% since the beginning of the tariff war promoted by Trump.
This devaluation of the dollar, combined with the contraction of 0.3% of US GDP in the first quarter of 2025, highlights the adverse effects of aggressive tariff policies. Exchange instability and economic slowdown reinforce the need for more sustainable solutions to commercial disputes between the US and its partners.
In an official note, Chinese deputy deputy he Lifeng, who led Beijing’s delegation, described the meeting as “deep, frank and constructive”, noting that the result “represents an important step in resolving differences through equal dialogue and mutual cooperation”.
He also stated that “economic and commercial relations between China and the USA do not concern only both countries, but have a direct impact on the stability of the global economy.”
Bessent leads pragmatic shift while Trump retracts
The turnaround in the negotiations was conducted by Scott Bessent, US Treasury Secretary, named the White House adult. While Trump and the Secretary of Commerce, Howard Lutnick, held public silence, it was up to the head of the Treasury to articulate the removal of tariffs, signaling an inflection in the white house’s stance.
According to economist Yao Yang, former dean of the National School of Development at the University of Beijing, in an interview published by South China Morning Postthe image of a strategist Trump is illusory. “He is not as deep as they imagine. It acts on impulse-one day aims at Ukraine by a Nobel, the other turns to Iran or North Korea,” he joke. “The tariffs would be to reind the US, but they didn’t work in 2018.”
China uses rationality and avoids unilateral concessions
Beijing avoided surrender narratives and presented himself as an active part of the agreement. Unlike concessions, it adopted stance of calculation and containment. In addition to tariff suspension, China has agreed to discuss expanded purchases of US agricultural, energy and aircraft products, as well as fentanyl topics, market access and technological regulation.
Bessent admitted that the goal is now a “more complete agreement” to be discussed by a bilateral committee with alternating meetings in both countries. He also blamed the Biden administration for not implementing Trump’s agreement signed in the first term, which would now return to the basis for the dealings.
RETAIL IS VIEW AS A US STRATEGIC LIABILITY
Chinese press and Asian economists celebrated the result as a containment victory. “China did not give in, but forced a significant reduction in tariffs,” said Zhiwei Zhang of Pinpoint Asset Management, in an interview with The New York Times. “It’s a good starting point.” The European Chamber of Commerce in China also greeted the measure, although warning of the provisional character of the pact.
The 90 -day truce, however, should generate race for commercial shipments, with pressure on global logistics infrastructure. Even with markets reacting positively – such as the Hong Kong bag, which rose 3% – analysts warn that the suspension is temporary and structural tensions persist.
Trump seeks political capital amid electoral pressure
Internally, Trump tries to present the negotiation as Victoria. But the base of the new agreement exposes its previous failure. With middle -term elections on the horizon and increasing fiscal pressures, the White House now bets on containment of damage. Yao Yang estimates that China has the most margin of maneuver at this time. “The US has more internal problems. The pressure to deliver results falls on Trump,” he said.
The tariff dispute had been relaunched in April, with Trump imposing up to 145% tariffs on Chinese products. Beijing retaliated with 125%, as well as embargoes to companies and strategic exports. Now, the truce gesture represents less a definitive resolution of the conflict and another tactical retreat in the face of a crisis without simple solution.
Source: vermelho.org.br
