Economy

Trump’s Tariff Stance: Why the 55% Rate Could Be the New Normal for China Trade

Trump views 55% tariffs as “the deal” with China. Nov 10 deadline looms for higher tariffs.

September 30, 2025, 11:15 PM

A large cargo ship passes a sailboat on a body of water

A massive cargo ship sails past a small sailboat on a calm waterway, with a rocky embankment and trees in the background. By MDL.

Executive Summary

President Donald Trump considers the existing 55% tariffs on Chinese imports to be a “good status quo” and the de facto trade agreement.

A critical November 10 deadline looms, after which U.S. tariffs on Chinese goods could escalate to approximately 145% (and Chinese tariffs to 125%) without an extension of the trade truce.

U.S. officials rejected China’s proposal to reduce tariffs in exchange for ceding ownership control of TikTok, noting increased assertiveness from Chinese negotiators.

The Story So Far

The current U.S.-China trade standoff is characterized by existing 55% U.S. tariffs on Chinese imports, which President Trump considers a “good status quo” and the de facto trade agreement. This perspective comes as a critical November 10 deadline approaches, after which these tariffs are set to escalate dramatically to 145% without an extension, potentially halting much of the bilateral trade. Negotiations have been further complicated by China’s assertive “wolf warrior ethos” and increased demands, including proposals like ceding TikTok ownership, which the U.S. has rejected, creating significant uncertainty around future trade relations.

Why This Matters

President Trump’s stance that the current 55% tariffs constitute a “good status quo” suggests an unwillingness to reduce them, creating significant tension as the November 10 deadline approaches. Without an extension or new agreement, tariffs could escalate dramatically to 145% for U.S. imports and 125% for Chinese imports, posing a substantial risk of severely disrupting or halting nearly all bilateral trade between the two economic giants.

Who Thinks What?

President Donald Trump’s administration, as articulated by U.S. Trade Representative Jamieson Greer, views the current 55% tariffs on Chinese imports as a “good status quo” and effectively the existing trade “deal,” indicating no immediate inclination to reduce them.

Chinese negotiators, led by Vice Premier He Lifeng, sought U.S. tariff reductions in exchange for concessions, and have exhibited an increasingly assertive stance with increased demands, leveraging their control over global supplies of rare earth minerals.

U.S. Trade Representative Jamieson Greer stated on Tuesday that President Donald Trump considers the existing 55% tariffs on Chinese imports to be a “good status quo,” even as a critical November 10 deadline looms for these tariffs to potentially escalate significantly. Speaking at the Economic Club of New York, Greer articulated the administration’s aim for a more balanced bilateral trade relationship, particularly through increased trade in “non-sensitive goods,” despite ongoing complexities in negotiations.

Trade Standoff and Tariff Deadlines

Greer conveyed that Trump views the current tariff structure as the de facto trade agreement with China. He quoted President Trump as saying, “Yeah, this is our deal. I’ve got 55% tariffs on it. That’s the deal.” This perspective suggests no immediate inclination to reduce the tariffs ahead of the November 10 expiration of a trade truce between the two economic giants.

The existing U.S. tariffs on Chinese goods, combined with China’s retaliatory tariffs of over 10% on U.S. imports, are set to revert to much higher rates without an extension. On November 10, U.S. tariffs could snap back to approximately 145%, while Chinese tariffs could reach 125%, potentially halting nearly all bilateral trade.

Negotiation Dynamics and TikTok Dispute

During mid-September talks held in Madrid, Chinese Vice Premier He Lifeng reportedly sought U.S. tariff reductions. This was offered in exchange for ceding ownership control of the Chinese video app TikTok to a U.S.-based consortium, a proposal that Greer and U.S. Treasury Secretary Scott Bessent ultimately rejected.

Greer observed that Chinese negotiators have exhibited a more assertive stance, attributed to China’s leverage over global supplies of rare earth minerals and magnets, leading to increased demands. He also highlighted how China’s “wolf warrior ethos” in diplomacy is increasingly influencing U.S.-China economic discussions, injecting a “political edge” into what were historically more technical negotiations.

Maintaining Communication Amidst Challenges

Despite the heightened tensions and increased demands, Greer affirmed that both sides are actively engaged in discussions, meeting frequently. He noted the presence of mutual respect and strong communication channels, which he believes help in avoiding unexpected policy shifts from either nation.

The path forward for U.S.-China trade relations remains uncertain, with the November 10 deadline serving as a critical juncture for determining the future of tariff levels and the broader economic engagement between the two global powers.