Trump says his trade deal with China prevented its economic collapse. But is it diplomacy, or self-praise disguised as policy?

Former US President Donald Trump has reignited global discussion on trade diplomacy with his bold claim that China would have “broken apart” without the tariff deal he struck with Beijing.

Speaking in a recent Fox News interview, Trump described the new agreement — which takes effect on May 14 — as a “massive help” to China, noting that both countries have agreed to reduce tariffs by 115%, while an additional 10% tariff remains in place.

In return, China has suspended its initial 34% tariff on US goods. The White House has celebrated the arrangement as a historic breakthrough, while Trump framed it as a stabilising move not only for US industry, but also for China’s struggling economy.

“If I hadn’t made this deal with China, they would’ve broken apart a long time ago,” Trump stated.

He positioned the agreement as part of his “trading for peace” doctrine — a strategy aimed at using economic leverage as a diplomatic tool. He further stated that he plans to make more unilateral tariff adjustments in the coming weeks with other trading partners, insisting that he’s “not in a hurry” to sign multilateral deals, and will prioritise decisions that benefit the US.

Meanwhile, Andy Rothman of Sinology suggested that China may benefit more than expected from this cooling of trade tensions. “Ironically, Trump’s tariffs might end up helping China reset its economic direction and restore business confidence. It might even ‘make China great again’,” Rothman commented.

In a surprising additional remark, Trump also claimed that India is now willing to cancel 100% of tariffs on US imports. “They can hardly do business,” he said. “You know what? They are willing to cancel all tariffs on the United States.”

While the deal has been hailed in some circles as a win-win, critics argue that Trump’s narrative oversimplifies a complex global economic balance, and warn against using crisis language for strategic gains.

 By Tarziman — 19 May 2025, 04:33 PM