What led up to Trump's trade deal with China

4 months ago
22

Description of What Led Up to Trump’s Trade Deal with China (2025):

The 2025 U.S.-China trade deal followed years of escalating economic and political tensions that began during Donald Trump’s first presidency. The initial trade war started in 2018, when Trump imposed heavy tariffs on Chinese goods to counter what he called unfair trade practices. China retaliated, sparking a multi-year standoff that disrupted global trade.

A partial resolution came with the Phase One deal in 2020, but it was soon undermined by the COVID-19 pandemic and ongoing disputes. Under President Biden, tensions remained high, with continued tariffs and new restrictions on Chinese tech companies.

By 2025, both countries faced economic pressures—China with slowing growth and the U.S. with inflation and business pushback. Trump, returning to political prominence, used these conditions to push for a new agreement.

The resulting deal included major tariff reductions and a 90-day truce, which Trump hailed as a "total reset" in U.S.-China relations. It aimed to revive trade, boost industries like shipping and retail, and calm global markets.

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