Economist and gold proponent Peter Schiff has called the recent trade agreement between the US and China a “BS win,” accusing President Trump of capitulating. In a post on X Monday, Schiff argued that reducing tariffs is a loss for Washington. According to an official statement from the White House, the United States and China have agreed to a temporary rollback of trade tariffs following two days of talks in Geneva. The deal suspends some duties by as much as 115% for 90 days. Tariffs on Chinese imports would be reduced to 30%, while Chinese tariffs on US goods would remain at 10%. “ China called America’s bluff and won, ” Schiff wrote . “ The ‘great’ China trade deal simply pauses Trump’s trade war for 90 days. We’re back to where we were before, except Americans are now paying 30% tariffs while the Chinese are only paying 10% .” Has Trump lost the trade war, or is China conceding? Per one commenter on Schiff’s post , data from the Peterson Institute for International Economics (PIIE) places average US tariffs on Chinese exports at 124.1% from 2019 to 2025. The Tax Foundation estimates that US households will bear an average cost of $1,300 due to tariffs in 2025. “ The deal just kicks the can down the road ,” they said, adding that the short-term pause does very little for Americans if China’s currency valuation or the long-term trade deficit is not addressed. In response, Schiff noted, “ I doubt Trump goes back to 145%. But there’s a lot of added uncertainty. ” The 62-year-old stockbroker predicted that American businesses would rush to place orders before the 30% rate expires. There is no outcome. We just have lower tariffs for 90 days than the ones we already imposed on ourselves since Liberation Day. So nothing had changed other than we agreed to harm ourselves less for now. China has higher tariffs now then they did before Liberation Day. — Peter Schiff (@PeterSchiff) May 12, 2025 Over the weekend, officials on both sides described the Geneva negotiations as “positive.” US Trade Representative Ambassador Jamieson Greer stated that the agreement would help reduce the country’s $1.2 trillion trade deficit. US Treasury Secretary Bessent, an official involved in the talks, called the outcome “substantial progress.” President Trump also celebrated the results through a social media post on Truth Social, claiming that “change had been negotiated in a friendly, but constructive, manner.” “ We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!! ” the US president posted. The White House Fact Sheet addressing the negotiations reported that America will retain some of existing duties. Tariffs imposed before April 2, 2025, including those under Section 301, Section 232, and those related to the fentanyl emergency and Most Favored Nation status, will remain in place. When asked about rumors that the timing of the tariff reductions was meant to benefit Trump’s business friends, Schiff replied, “ Most likely. That’s why Trump said 80% seemed right, knowing he already gave Bessent the green light to go to 30%. I’m sure Trump insiders made a bundle .” Optimism or delay? Statements from both delegations may have spelled that the war is coming to an end, but both countries are still in talks over several policies. If no concessions are made by the end of the 90-day window, the standoff will likely continue. Chinese commerce ministry diplomat Li Chenggang stated that China has always pursued “win-win outcomes” in trade negotiations. “Any possible deal to be reached will definitely be in the development interest of China’s own,” he told reporters earlier today. The joint statement from the delegations confirmed plans for continued negotiations in the US, China, or a neutral location. Talks will reportedly now focus on increasing China’s purchases of American goods, almost similar to a commitment made during the 2020 trade war. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
