The trade talks in Geneva between the United States and China yielded greater-than-expected de-escalation in the ongoing trade war, but it won’t be so easy to undo the damage this skirmish has done to U.S. trade credibility and the role of the dollar on the global stage. In effect, the deal extends to China the same treatment that the Trump administration already granted to other countries on April 9 when it announced a pause to the implementation of “reciprocal tariffs.” Chinese goods are still subject to the universal 10 percent tariff on all U.S. imports in addition to certain sectoral tariffs, which brings the effective tariff rate on Chinese goods to around 40 percent—still significantly higher than a year ago. Chinese officials described the joint statement from the Geneva talks as “an important step to resolve differences through equal dialogue and consultation.” Although the Chinese side did not explicitly claim victory, the lack of defiant propaganda on Chinese social media suggests that Beijing views itself as the winner in this trade war round.
Author: Zongyuan Zoe Liu, Council on Foreign Relations
Published at: 2025-05-18 22:01:59
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