New China Trade Deal Is Just a Stunt, Hurting American Workers

On May 12, 2025, President Trump unveiled a new trade agreement with China, touting it as a lifeline for American workers. The White House celebrated the 90-day tariff suspension and fentanyl commitments as proof of tough dealmaking. But dig deeper, and the deal reveals a troubling truth: it’s a short-term stunt that sidesteps the bold reforms needed to strengthen our economy. For Americans craving stability, this agreement delivers more flash than substance.

The deal slashes U.S. tariffs on Chinese goods from 145 percent to a 30 percent baseline, while China drops its duties from 125 percent to 10 percent. Both nations pause non-tariff barriers, like export controls, and agree to ongoing talks led by Treasury Secretary Scott Bessent and Vice Premier He Lifeng. At first glance, it eases tensions. Yet, the fine print exposes a reliance on outdated tariffs that burden families and fail to address the real drivers of economic growth.

Why does this matter to you? Trade policies dictate the cost of your groceries, the security of your job, and the strength of our global alliances. This deal, despite its lofty promises, threatens higher prices, weaker partnerships, and missed opportunities for workers. It’s a step backward when we need a leap forward.

The administration insists that retaining a 10 percent tariff, plus Section 301 and fentanyl duties, shields American jobs. But evidence paints a starkly different picture. Tariffs since 2018 have driven up costs, with studies showing they added $1,200 yearly to household budgets. The 30 percent baseline tariff, including a 20 percent fentanyl surcharge, will likely keep prices elevated for everyday goods like clothing and electronics, hitting families and small businesses hardest.

The promised manufacturing revival remains elusive. Despite high tariffs, U.S. manufacturing added only 1,000 jobs in March 2025, even with 482,000 openings. Automation, not trade imbalances, accounts for most job losses. Meanwhile, targeted investments—like the CHIPS Act, which spurred TSMC’s $40 billion Arizona plant and 4,000 jobs—show what works. Why lean on tariffs that hurt consumers when we could expand proven strategies like these?

Some defend the deal, citing the $295.4 billion trade deficit with China in 2024 as proof of unfair practices. But tariffs won’t fix that gap. Research suggests that even eliminating the deficit through duties would lift manufacturing jobs by just 1–2 percent. A smarter path involves enforcing trade rules, investing in innovation, and supporting workers directly—not piling costs onto families already stretched thin.

This deal’s silence on labor and environmental protections is deafening. China’s weak standards give its companies an unfair edge, undercutting U.S. workers and worsening global pollution. A forward-thinking agreement would demand enforceable commitments to fair wages and sustainable practices, like those in the USMCA’s automotive provisions. Instead, this deal prioritizes tariff cuts, letting China evade accountability.

Experts at the Roosevelt Institute emphasize that targeted policies—such as green-energy subsidies or labor clauses—create lasting benefits for workers and the planet. The Inflation Reduction Act, for example, has fueled clean-tech jobs while cutting emissions. Yet, this agreement ignores such approaches, risking strained ties with allies like the EU and Canada, who share our commitment to sustainability. Why weaken those partnerships when we could lead a global push for fair, green trade?

The deal’s fentanyl measures—China’s pledge to regulate precursors and the U.S.’s 20 percent surcharge—seem proactive but fall short. The crisis, claiming countless lives yearly, demands a multifaceted response: expanded treatment, stronger border enforcement, and global cooperation. Revived U.S.-China counternarcotics efforts and APEC agreements prove diplomacy can work. But linking fentanyl to trade tariffs invites escalations that could derail progress.

Our neighbors, Mexico and Canada, have joined a global coalition to track precursors and sanction traffickers, relying on trust and coordination. By tying fentanyl to tariffs, the administration risks alienating these partners, who’ve doubled seizures and shared critical intelligence. A better strategy would prioritize naloxone access and community prevention programs, not duties that raise costs without tackling addiction’s deeper causes.

This trade deal isn’t a catastrophe, but it’s no victory either. It’s a temporary fix that dodges the tough work of building a fairer economy. American workers need policies that invest in their skills, protect their rights, and preserve the planet—not ones that inflate their bills. We deserve trade agreements that champion people, with robust labor and environmental standards, strategic investments like the CHIPS Act, and alliances that amplify our influence.

China’s economic power isn’t going away, and it shouldn’t. But we can compete wisely—through innovation, diplomacy, and policies that empower workers. The Geneva talks offer a chance to shift course. Will we embrace it, or stick with tariffs that strain families? Every American seeking a brighter future deserves an answer that puts them first.

This deal falls short of that vision. It’s a call to demand better—trade policies that build a stronger, fairer, and greener America, ready to lead the world with purpose and unity.