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Major positive news for US-China trade! The US may further reduce tariffs!

  • Major positive news for US-China trade! The US may further reduce tariffs! author
  • 19th December 2025

Recently, U.S. Treasury Secretary Steven Mnuchin sent a friendly signal in an interview with Fox Business Channel, stating that China “has fulfilled all its commitments in the negotiations so far,” and emphasized that the Trump administration hopes to promote a “rebalancing” of U.S.-China trade through cooperation.

This is seen as a positive sign, indicating a shift in U.S.-China trade relations from “confrontation” to “dialogue” in the Trump 2.0 era, boosting business confidence and eliciting a positive response from the stock market.

Mnuchin, who led the tariff negotiations’s statement reflects the official position and aims to stabilize market expectations and avoid trade uncertainties at the end of the year.

Mnuchin’s move is intended to strengthen mutual trust. The U.S. acknowledging China’s fulfillment of its commitments (such as rare earth controls and increased soybean purchases) can reduce risks in the trade sector and promote dialogue in more areas (such as technology and energy). This contributes to the stability of global supply chains and reduces the costs for businesses to circumvent tariffs.

However, “rebalancing” remains central to U.S. interests, and the core of this “rebalancing” is to reduce the U.S. trade deficit with China.

According to publicly available data, the U.S. trade deficit with China shows a significant narrowing trend in 2025. From January to September 2025, the U.S. goods trade deficit with China was $175.381 billion, a 25.2% decrease compared to the same period in 2024 ($234.453 billion). In September alone, the U.S. goods trade deficit with China was $16.495 billion, a 51.7% decrease compared to September 2024 ($34.154 billion).

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