KEY POINT SUMMARY โ Trade deal with China
โข Trade deal with China follows months of global market panic
โข Trump drops tariffs by 115 points after two days of talks
โข Treasury Secretary Bessent, USTR Greer praised for diplomacy
โข Markets rally as US seeks similar deals with 20+ nations
โข 10% global tariff remains as new trade era begins
Trade Deal With China Calms Global Markets After Shock Tactics
President Donald Trumpโs trade deal with China capped a dramatic reversal from his aggressive tariff strategy that had threatened the global economy. The surprise de-escalation came after two days of talks in Geneva where the U.S. and China agreed to slash tariffs by 115 percentage points, ending months of economic brinkmanship.
National Economic Council Director Kevin Hassett called it โa fresh start with China,โ praising the new diplomatic path forward. The move sent stock markets soaring worldwide, signaling relief and renewed confidence in international trade.
Sending In Serious Negotiators Made the Difference
Behind the breakthrough were Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer โ Trumpโs trusted lead negotiators. Regarded as calm and professional, the duo helped push both sides toward compromise.
The trade deal with China is expected to trigger similar bilateral talks with over 20 nations. After a small win with the UK last week, foreign diplomats said the U.S. now has a working model for fast-tracked trade deals tailored to Trumpโs demands.
โThis is the first time weโve seen a clear path to land this plane without economic disaster,โ one GOP senator told CNN.
Trumpโs Pivot From Liberation Day Tariffs Pays Off
Trumpโs sudden tariff announcement on April 2, dubbed โLiberation Day,โ rattled markets and sparked panic about global recession. The presidentโs inner circle now admits the path to Geneva was improvised โ driven by dire warnings from CEOs, spiking bond yields, and internal pressure.
Although Trump insisted the chaos was part of a broader strategy, aides revealed he personally paused reciprocal tariff hikes on nearly 100 countries and explored even bolder off-ramps behind closed doors.
Bessent described it as โstrategic uncertaintyโ โ a deliberate element in Trumpโs game theory approach to trade. โWe always had a plan,โ he said.
Trade Deal With China Ushers in New Global Reality
Despite the rollback, the U.S. still maintains a baseline 10% universal tariff. Yet nations continue lining up to negotiate, effectively accepting Trumpโs new world order in trade.
Foreign diplomats and lawmakers alike are beginning to see the 10% rate as a permanent feature of U.S. trade policy. Officials say that was always Trumpโs endgame โ enforce leverage through tariffs while forcing global partners to the table.
โWe now have a process and mechanism in place for ongoing talks,โ Bessent told reporters. โThat was always the goal.โ
Trade Is Trumpโs Power Tool in Diplomacy
Trump sees trade as the cornerstone of his global influence. He even credited recent diplomatic wins โ like the India-Pakistan ceasefire โ to promises of future trade flows.
The trade deal with China now becomes a blueprint for Trumpโs vision of transactional diplomacy: maximum tariffs, global disruption, then rapid resolution with targeted gains.
โPeople have never really used trade how I use trade,โ Trump declared Monday. That, more than anything, may explain how he turned chaos into a headline victory.
