Trump's tariff war with China and the truces that followed

The fight escalated after Trump's April 2 "Liberation Day" tariffs on much of the world. China matched his 34% rate on its goods with a 34% tariff on all U.S. products,^[12] and stocks plunged, with the S&P 500 falling 6% in a day.^[13] China also tightened exports of rare earths, minerals vital to electric vehicles, defense and high-tech industries.^[14] Over the following week the two sides raised their rates in turn. Trump threatened another 50%,^[15] China went to 84%,^[16] and when Trump paused his higher tariffs on other countries, he kept 145% tariffs on Chinese goods in place.^[17] China raised its tariff to 125%.^[18] Beijing reportedly ordered its airlines to stop taking deliveries of Boeing jets,^[19] named a new trade negotiator, Li Chenggang,^[20] and warned other countries against trade deals with Washington that harmed Chinese interests.^[21] Chinese exports to the United States fell sharply in April.^[22]

Signs of a retreat came within weeks. Treasury Secretary Scott Bessent told investors in a private speech that the standoff was not sustainable,^[23] and Trump said the tariffs on China would "come down substantially, but it won't be zero."^[24] Beijing at first denied that any negotiations were under way.^[25] In May, Bessent and the top U.S. trade negotiator, Jamieson Greer, met Chinese officials in Geneva,^[26] and the two sides agreed to cut their tariffs for 90 days, the United States to 30% from as high as 145% and China to 10% from 125%.^[1] U.S. stocks jumped, with the Dow rising more than 1,000 points.^[27]

The truce proved fragile. By late May, Bessent said the talks were "a bit stalled,"^[28] and each side accused the other of violating the Geneva agreement.^[29] After a phone call between Trump and Xi,^[30] negotiators met in London in June and agreed on a framework to carry out the truce,^[31] and Trump said China would supply magnets and rare earths up front.^[32] The two governments formalized the rare earth arrangement later that month,^[33] and Washington lifted new curbs on sales of chip design software to China.^[34] After talks in Stockholm, Trump extended the truce by another 90 days in August, leaving U.S. tariffs on Chinese goods at 30%.^[35][2]

The truce nearly collapsed in October 2025, when China announced new controls on exports of rare earths and related technology.^[36] Trump called the controls hostile and suggested canceling a planned meeting with Xi,^[37] then announced an additional 100% tariff on Chinese goods from November 1.^[38] China answered planned U.S. port fees on Chinese ships with fees on American ones.^[39] Negotiators then reached a framework that averted the higher tariffs,^[40] and after meeting Xi in South Korea, Trump said he would lower the combined tariff rate on Chinese goods to 47%, while China agreed to buy 25 million metric tons of U.S. soybeans a year.^[41] China had stopped buying American soybeans in May,^[42] and in December the administration announced $12 billion in aid for farmers hurt by the trade war.^[43]

In 2026 the two sides kept negotiating while trading accusations. Their negotiators met in Paris in March ahead of a planned Trump visit to Beijing.^[44] In the summer, China rejected U.S. criticism of its excess industrial capacity ahead of the results of an American investigation that could bring new tariffs,^[45] and a White House report led by trade adviser Peter Navarro said China was rerouting goods through more than 40 countries to dodge tariffs, costing the United States up to $26 billion a year in revenue.^[46] Trump also imposed tariffs of up to 100% on imported drones, an industry China dominates.^[47] In September, the two governments extended their truce to January 10,^[3] China expanded its export controls on chemicals used to make illegal drugs,^[48] and after Xi's visit to the White House they pledged tariff cuts on $60 billion of goods, from U.S. corn to Chinese toys and household appliances.^[4][5] In November, China extended its suspension of an additional 24% tariff on US goods to January 10, 2027, while keeping a 10% rate,^[49] and Treasury Secretary Scott Bessent called for more balanced trade ahead of further talks between Trump and Xi.^[50] Trump's meetings with Xi are followed in a separate arc, as are his other second-term tariffs and the court fight over them.