Trump Remains Optimistic About US-China Trade Deal Amid Executive Order Signing

In a press conference held on Monday, May 12, President Donald Trump expressed continued confidence in the ongoing US-China trade negotiations while joining Health and Human Services Secretary Robert F. Kennedy Jr. to unveil an executive order aimed at reducing prescription drug prices in the US.

Details of the Trade Agreement

The press conference, while primarily focused on health care reforms, provided a platform for Trump to address the current status of the trade war between the two economic powerhouses. According to reports by Undercurrent News, the United States will reduce tariffs on Chinese imports from a staggering 145% to 30%, effective May 14. In a reciprocal action, China will lower its tariffs on American goods from 125% to 10%.

This temporary reduction of tariffs is set for a 90-day period. When questioned about the potential for tariffs to revert to the previous 145% rate if a long-term agreement is not achieved, Trump responded, “No, but they would go up substantially higher.”

A Path Forward

Despite the looming uncertainty, Trump maintained a positive outlook: “I think you will have a deal,” he emphasized during the conference.

The White House has asserted that discussions related to trade will continue as the tariff changes take effect. A joint statement released on the same day mentioned that these discussions could take place either in China, the United States, or a mutually agreed third country.

Upcoming Negotiations

Further bolstering the administration’s commitment to these negotiations, Treasury Secretary Scott Bessent appeared on CNBC’s “Squawk Box,” indicating that further meetings with Chinese officials would likely occur in the upcoming weeks. “I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement,” said Bessent, without disclosing specific details regarding the location of these talks.

Bessent emphasized that a new framework is now in place to facilitate ongoing dialogue, saying, “What we have with the Chinese is a mechanism to avoid upward tariff pressure.”

Fentanyl-Related Discussions

He also clarified that the remaining 30% US tariff on Chinese goods includes a 20% tariff specifically related to fentanyl. Bessent noted that there was significant discussion regarding fentanyl at previous meetings, highlighting that Chinese officials appear committed to helping the US combat the flow of precursor drugs.

“I think that we saw here in Geneva that the Chinese are now serious about assisting the US in stopping the flow of precursor drugs,” he remarked, underscoring the administration’s focus on drug-related issues amidst broader trade discussions.

As the situation continues to develop, all eyes will be on the forthcoming meetings and the potential for a more comprehensive agreement between the two nations.