Donald Trump has called a truce in his unhinged attack on world trade, drastically suspending his 145 per cent tariffs on Chinese imports as US consumers balk at increased prices
Donald Trump has agreed to halt his trade war with China after American business leaders warned that US shelves would be empty in weeks.
Today’s retreat came as the White House faced growing pressure over the economic toll of its tariffs. Trump’s attack on foreign trade had brought activity at major US ports to a near-standstill and left retailers scrambling to secure goods ahead of the critical summer season.
In a joint statement today, the US and China announced a 90-day suspension of mutual tariffs while negotiators work to strike a broader deal. As part of the agreement, America will reduce tariffs on Chinese goods from 145 per cent to 30 per cent, and China will cut its duties on American imports from 125 per cent to 10 per cent.
The move followed urgent appeals from US CEOs, who warned Trump in recent weeks that supply chains were seizing up and that shelves could begin going empty within a month. Industry groups had cautioned that the tariffs were not just hitting manufacturers, but also hurting the American consumer, the very group Trump has long promised to protect.
“It became clear the US consumer would suffer most,” said one executive familiar with talks between the administration and retail leaders. “Prices were already rising, and if this continued, back-to-school and holiday shopping seasons were going to be a disaster.”
Treasury Secretary Scott Bessent acknowledged the economic strain in remarks at a press conference in Geneva, where US and Chinese officials met over the weekend.
“We concluded that we have a shared interest,” he said. “The consensus from both delegations is that neither side wanted a decoupling.”
The standoff had already inflicted damage on both economies. China had steadfastly refused to back down to Trump, creating panic among thousands of US importers.
A source told the Mirror: “Whichever way you cut it, this is embarrassing for Trump. He likes to portray himself as this strongman, but in reality, he has just caved in. He finally listened to the grown-ups in the room and realised American commerce was tanking.
“Unlike America, which relies on China, China does not rely on America. Only about 12 per cent of Beijing’s imports come from the United States. It is not a massive amount, and one they could easily continue to function without.”
American companies had frozen shipments and halted orders, while Chinese factories saw a steep decline in US-bound exports following Trump’s tariff war. The impasse triggered a selloff in markets earlier this month, wiping trillions of pounds off markets.
In addition to tariff relief, the talks covered US demands for Beijing to crack down on chemical exports used to produce fentanyl. Bessent said Chinese officials “understood the magnitude” of the American opioid crisis.
US Trade Representative Jamieson Greer said the negotiations were grounded in “mutual understanding and mutual respect,” but added that China had been the only nation to retaliate directly after Trump’s sweeping imposition of so-called reciprocal tariffs last month.
