Xi’s Firm Stance Forces US Tariff Retreat, Marking Strategic Victory for China

By Staff, Agencies

China has emerged with a strategic advantage after President Xi Jinping’s defiance against former US President Donald Trump led to a breakthrough in trade talks.

Following two days of negotiations in Geneva, the US and China agreed to lower tariffs on each other’s goods for a 90-day period, signaling a pause in their trade conflict.

The agreement includes a 30% reduction in the 145% combined US tariffs on Chinese imports, while China will reduce its duties on American products to 10%. Notably, the reciprocal 34% tariff introduced by Trump on April 2 has been suspended, aligning China's tariff with the rate imposed on the UK, according to Bloomberg.

Despite the immense pressure exerted by the Trump administration—raising tariffs to unprecedented levels—Xi refused to engage directly with Trump or concede to demands. Instead, Beijing implemented domestic economic measures such as interest rate cuts and diplomatic outreach to diversify export markets and counter American "bullying."

The US ultimately conceded to most of China’s core demands during the Geneva talks, including agreeing to "aggressive actions" to curb fentanyl trafficking, which could lead to the removal of an additional 20% tariff. The deal offered relief to US financial markets, with both the dollar and stocks rising, while Chinese equities also gained.

Experts view the outcome as a win for China. Trey McArver of Trivium China remarked, “This is arguably the best outcome China could have hoped for; the US backed down.” He added that this episode is likely to strengthen China’s confidence in its leverage during future negotiations.

Gerard DiPippo, associate director at the RAND China Research Centre, said the episode underscores the importance of economic power. “It’s a strategic vindication for Beijing and reinforces Xi’s focus on manufacturing and self-reliance,” he noted.

Scott Kennedy from the Center for Strategic and International Studies highlighted that Washington’s retreat wouldn’t have happened without China’s firm response, which included retaliatory tariffs and export controls. “This will boost Xi’s political clout at home and elevate his diplomatic standing globally,” Kennedy said.

While Trump hinted at a “total reset” in relations and expressed hope of speaking with Xi by the week’s end, he confirmed that certain sector-specific tariffs—on cars, steel, aluminum, and possibly pharmaceuticals—remain in place.

As the 90-day truce takes effect, China now has a window of opportunity to negotiate a broader agreement that safeguards its trade interests. Meanwhile, Beijing’s latest national security white paper reaffirmed its commitment to stable ties with the US but warned that pressure tactics are not an effective way to engage with China.