In a statement that has drawn both attention and skepticism, former U.S. President Donald Trump recently claimed that a comprehensive trade agreement with China has been completed. The announcement, made publicly during a campaign-style appearance, reignites discussion about the long-standing economic conflict between the world’s two largest economies.
However, despite Trump’s declaration, the reality on the ground paints a more complex picture. Over 55% of tariffs imposed on Chinese goods during the height of the U.S.-China trade war remain in place, raising questions about what the supposed "final deal" actually entails.
⚔️ Background: The Trade War That Shook Global Markets
The U.S.-China trade war began under Trump’s administration in 2018. Driven by accusations of unfair trade practices, intellectual property theft, and forced technology transfers, the U.S. levied heavy tariffs on more than $370 billion worth of Chinese goods. In retaliation, China imposed tariffs on U.S. exports, particularly agricultural products.
This economic standoff disrupted global supply chains, triggered market volatility, and raised prices on a variety of goods for both countries.
In January 2020, both sides signed the "Phase One Trade Agreement", which included commitments from China to increase purchases of American goods, improve IP protections, and prevent currency manipulation. But it did not significantly reduce existing tariffs.
📊 Trump’s Latest Claim — What Does It Mean?
Trump’s recent assertion that the trade agreement is now "complete" lacks specificity and has not been officially verified by the Chinese government or U.S. Trade Representative (USTR). Based on the available information, it appears that:
- There is no public documentation of a new, formalized deal.
- The claim may refer to the completion of negotiations or a political framework, rather than a legal, enforceable agreement.
- The key issues such as intellectual property rights, technology transfer, and market access remain unresolved or partially addressed.
🚧 Tariffs Still Stand: 55% Remain in Effect
Despite the optimism suggested by Trump’s announcement, over 55% of U.S. tariffs on Chinese goods are still active. These tariffs cover a wide range of products including:
- Consumer electronics
- Machinery and industrial equipment
- Automotive parts
- Chemicals and plastics
The Phase One Deal only saw modest tariff relief. And while some exemptions and adjustments were made under the Biden administration, the majority of Trump-era tariffs have been retained, partly as leverage in ongoing strategic competition with China.
According to recent U.S. Trade Representative reports and economic analysts, the continuation of tariffs is part of a broader policy shift toward economic containment and supply chain realignment.
🌐 Global Implication
If Trump’s claim reflects an internal understanding or informal agreement, it could signal a thaw in trade tensions. However, without concrete reductions in tariffs or formal bilateral statements, businesses and investors remain cautious.
A fully ratified trade agreement would provide clarity for global markets and could help stabilize inflation, improve trade flows, and open new opportunities for companies on both sides. But as long as tariffs remain, friction in the U.S.-China economic relationship continues.
🧠 Conclusion
While Donald Trump’s claim of a finalized trade deal with China may be politically advantageous, the current reality suggests that substantial barriers remain. With more than half of U.S. tariffs on Chinese goods still intact, the long-term resolution of this trade war is far from certain.
Until an official agreement is confirmed, and tariffs are lifted or revised, the U.S.–China trade relationship will remain under scrutiny with global markets watching closely.