The new U.S.-China trade deal looks suspiciously generous toward Beijing. American tariffs plummet from 145% to 30%, while China drops to a mere 10% – and keeps their 30% tax on U.S. goods. Do the math: a $40,000 Chinese car still costs Americans an extra $11,000 in tariffs. Despite White House claims of a “historic win,” the 90-day agreement leaves U.S. importers shouldering heavy burdens. The deeper story behind this lopsided deal raises eyebrows.
While U.S. officials trumpet their latest trade deal with China as a “historic win,” the numbers tell a different story. The May 12 agreement, hammered out in Geneva, looks suspiciously generous to China when you dig into the details.
Sure, both sides are dropping their tariffs – the U.S. from 145% to 30%, China from 125% to 10%. Notice something odd about those numbers? Yeah, we thought so too.
Let’s be real here. China’s walking away with a sweet deal – a mere 10% tariff while still getting to slap a 30% tax on American goods. And they’re only promising to remove retaliatory measures they just put in place last month. How convenient.
China scores a sweetheart deal, dropping tariffs to 10% while keeping American goods at 30% – another win at our expense.
Meanwhile, American importers are still getting hammered. That $40,000 car from China? Tack on another $11,000 in tariffs. Those $10,000 parts you needed? That’ll be $2,500 extra, please and thank you.
The White House is patting itself on the back for this “unparalleled expertise in securing deals,” but this 90-day agreement looks more like a desperate attempt to claim a quick win.
Treasury Secretary Scott Bessent and Representative Jamon Gre will be sitting across from China’s Vice Premier He Lifeng, trying to hammer out something more permanent. Good luck with that. For more details on this developing story, visit the ABC News homepage.
At least some barriers are staying put. The 25% tariff on vehicles isn’t budging, and neither are the levies on steel, aluminum, or pharmaceuticals. That 20% fentanyl-related tariff? Still there. The staggering trade deficit of $295.4 billion with China in 2024 shows just how much work remains to be done. The international trade agreements continue to shape domestic economic conditions in ways that challenge policymakers.
But here’s the kicker – while financial markets are celebrating this temporary truce, nobody seems to be asking what happens after these 90 days are up.
The administration claims this deal will reverse American job losses and save manufacturing.
But with China still holding most of the cards – including their grip on rare earth exports and electronics – it’s hard to see how this lopsided agreement accomplishes anything beyond giving China a 90-day discount at America’s expense.
