The Trump administration announced a significant trade deal with China, marking a potential turning point in the ongoing trade war that has disrupted global markets.

The agreement, finalized after two days of negotiations in Switzerland, comes just weeks after President Donald Trump imposed sweeping tariffs that sent shockwaves through the world economy.

The trade deal follows a period of heightened economic tension. In early April 2025, Trump introduced “reciprocal” tariffs, including a staggering 145% levy on Chinese imports, effectively halting most trade with China.

These measures, part of Trump’s “Liberation Day” tariff strategy, led to a sharp decline in shipping volumes at U.S. ports, particularly on the West Coast, and triggered volatility in global financial markets.

China retaliated with its own tariffs, reportedly as high as 125% on certain U.S. goods, though it compiled a list of exempt American products to ease tensions discreetly.

The economic standoff prompted urgent negotiations, with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meeting China’s Vice Premier He Lifeng in Geneva.

The White House described the Switzerland talks as “productive,” with an agreement reached on Sunday, May 11, 2025.

While specific details remain undisclosed, the deal is seen as a critical step toward resolving the trade war between the world’s two largest economies.

Bessent indicated that further details would be shared in a briefing on Monday, suggesting that the agreement may include measures to reduce tariffs or address trade imbalances.

U.S. officials, including Bessent, expressed optimism about the progress. Bessent noted that the differences between the two sides were “not as great as previously thought,” hinting at a more conciliatory approach.

The announcement aligns with reports that four Chinese exporters, including suppliers to major U.S. retailers like Walmart, are preparing to resume shipments to the U.S., signaling potential trade normalization.

The China deal follows Trump’s recent trade agreement with the United Kingdom, announced on May 8, 2025, which reduced tariffs on U.K. autos, steel, and aluminum.

That deal, hailed as a “historic” achievement, was the first since Trump’s global tariff initiative began. It lowered U.S. tariffs on British cars to 10% for the first 100,000 vehicles and boosted U.S. exports of beef and ethanol, though a 10% baseline tariff on most British goods remains.

Trump’s trade policy has been a mix of aggressive posturing and strategic pauses.

After initially imposing high tariffs, he paused them for 90 days for most countries (except China) to allow for negotiations, setting a 10% baseline tariff.

His approach has drawn criticism for destabilizing markets but has also brought countries like the U.K. and now China to the negotiating table.