Donald Trump: "China has to make a deal"

Donald Trump: "We'll see what happens, but in the end, they have to come to an agreement because if they don’t, they won’t be able to do business in the United States. So, we want them to be involved, but they have to—and other countries have to—reach a deal. And if they don’t come to an agreement, we will set the terms because we are the ones who set the terms. Scott, Howard, myself, and others—we’re going to set the agreement, and it will be a fair deal for everyone. And I think it’s a process that will move pretty quickly.

We’ve talked to many, many countries and we’re getting their input on things. You know, there are a lot of things. They have value-added taxes (VAT). They have—they have everything you can imagine. Don’t forget, as an example, the European Union was created to take advantage of the United States. That’s why it was created—and they’ve done that. But they’re not doing it anymore."

In 2025, the Trump administration intensified its trade policy toward China by imposing new tariffs and restrictions, which led to bilateral tensions and negotiations to reach a new trade agreement.

Tariff Escalation
On February 1, 2025, President Trump signed Executive Order 14195, establishing a 10% tariff on all Chinese imports, effective February 4. Later, on March 4, these tariffs were raised to 20%. China responded with a 15% tariff on U.S. agricultural products such as soybeans, corn, and meat, and also launched antitrust investigations and suspended imports of certain American goods.

Tensions and Negotiations
The Trump administration justified the tariffs as a response to unfair trade practices and national security concerns. China criticized the measures, urging the U.S. to stop threats and coercion if it truly sought an agreement. Despite the tensions, both parties expressed a willingness to negotiate. China prepared a proposal to revive the 2020 trade deal, committing not to devalue the yuan and to increase purchases of American goods.

Outlook
President Trump expressed optimism about reaching a fair and swift agreement, emphasizing that the U.S. would set the terms. Meanwhile, financial markets reacted positively to signs of a potential resolution, although uncertainties remain about the future of trade relations between the two nations.