The United States and China stepped away from the brink of a near embargo of bilateral trade on May 12. The countries had entered an escalatory spiral after the Trump administration announced new tariffs in April. By April 11, tariffs on both sides had reached prohibitive levels. The Geneva negotiations allowed both sides to unwind their retaliatory measures and avoid a collapse in trade. Both sides claimed victory. In the near term, the Trump administration achieved its goal of a mutual tariff de-escalation, and Beijing committed to resuming exports of rare earths and magnets. China secured a verbal commitment that the United States doesn’t seek to decouple and a mechanism for future bilateral negotiations.
Testing Self-Reliance: What the Trade War Reveals About China’s Vulnerabilities and Power | RAND
