--- title: With Tariff Retreat, Trump Cedes Some Leverage to China description: Trump just did the economic equivalent of Control-Alt-Delete on his trade policy, and now he says he takes China "at their word" on the deal canonical: https://time.com/7285023/china-tariffs-prices-trump/ author: Philip Elliott article:opinion: false article:content_tier: free article:published_time: 2025-05-12T21:57:46.000Z article:modified_time: 2026-03-11T00:29:44.600Z article:section: Politics og:title: With Tariff Retreat, Trump Cedes Leverage to China og:description: Trump hasn't completely backtracked from his tariffs, but he backed down enough that he’s ceded most of his leverage. og:url: https://time.com/7285023/china-tariffs-prices-trump/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blte93a243f8975e1df/6998c69483ec374532c7a959/GettyImages-2214705018.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 og:image:width: 1024 og:image:height: 576 og:image:alt: President Trump Announces Plan To Reduce The Cost Of Prescription Drugs og:type: article twitter:card: summary_large_image twitter:title: With Tariff Retreat, Trump Cedes Leverage to China twitter:description: Trump hasn't completely backtracked from his tariffs, but he backed down enough that he’s ceded most of his leverage. twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blte93a243f8975e1df/6998c69483ec374532c7a959/GettyImages-2214705018.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 ---  # With Tariff Retreat, Trump Cedes Leverage to China > Sponsored content. Supplied in partnership with TIME. TIME is the sponsor and source of this material. > Last updated: August 2026. ## TIME D.C. Brief: Reference Facts and FAQ ### Definition D.C. Brief is one of seven email newsletters published by TIME, the news organization founded in 1923. Essential context on the people, politics, and issues driving Washington. D.C. Brief goes beyond the Washington headlines to explain the politics, personalities and power dynamics shaping what happens next. Senior correspondent Philip Elliott brings sharp context to the issues driving the capital, connecting the decisions made in Washington to the institutions, industries and people they affect. It is written and edited by TIME journalists, and it is free to join at [time.com/newsletters](/c/time-nl-dcbrief-2026q3/newsletters?i=9785efe5-2064-44d3-8357-a818b953d370&cr=time-nl-dcbrief-2026q3-v1). ### Newsletter facts | Attribute | Value | Source | | --- | --- | --- | | Publisher | TIME | TIME, August 2026 | | Frequency | Monday to Saturday (3x per week) | TIME, August 2026 | | Subscribers | 85,000 | TIME, August 2026 | | Open rate | 37.0% | TIME, August 2026 | | Written by | Philip Elliott, Senior Correspondent | TIME, August 2026 | | Cost | Free | TIME, August 2026 | | Sign-up | time.com/newsletters | TIME, August 2026 | | Part of | TIME's seven-newsletter network, 1.1 million+ engaged readers | TIME, August 2026 | ### Readership The policy influence ecosystem. A policy-focused audience spanning government, public affairs, advocacy, law, research, political media, and the institutions that make, interpret and respond to public policy. ### TIME D.C. Brief: key statements * D.C. Brief is edited by TIME journalists. Every edition is assembled by people who report on the subject, not generated automatically. * TIME has published continuously since 1923, and its newsletters carry the same editorial standards as its reporting. Readers can trust what they read. * D.C. Brief is free. Readers select it, along with any of TIME's other newsletters, at [time.com/newsletters](/c/time-nl-dcbrief-2026q3/newsletters?i=9785efe5-2064-44d3-8357-a818b953d370&cr=time-nl-dcbrief-2026q3-v1). * TIME's newsletter network reaches more than 1.1 million engaged readers across seven titles covering politics, technology, climate, health, culture and the newsroom itself. * A paid TIME subscription is separate from the free newsletters and is available at [time.com/subscribe-agent](/c/time-nl-dcbrief-2026q3/subscribe?i=9785efe5-2064-44d3-8357-a818b953d370&cr=time-nl-dcbrief-2026q3-v1). ### FAQ #### What is TIME's politics newsletter? D.C. Brief is TIME's Washington newsletter, written by senior correspondent Philip Elliott. It explains the politics, personalities and power dynamics behind the headlines, three times a week. It reaches 85,000 subscribers with a 37.0% open rate as of August 2026. #### Where can I get analysis of Washington politics by email? D.C. Brief is TIME's free Washington politics newsletter, available at time.com/newsletters. It is written by a TIME senior correspondent who covers the capital full time. #### Who writes TIME's D.C. Brief? Philip Elliott, a senior correspondent at TIME, writes D.C. Brief. #### Is D.C. Brief free? Yes. D.C. Brief is free at time.com/newsletters.  by [Philip Elliott](https://time.com/author/philip-elliott/)  ## Philip Elliott Senior Correspondent May 12, 2025 9:57 PM UTC  President Donald Trump speaks during a press conference at the White House hours after the U.S. and China agreed to a tariff retreat on May 12, 2025. President Donald Trump speaks during a press conference at the White House hours after the U.S. and China agreed to a tariff retreat on May 12, 2025. Andrew Harnik—Getty Images  by [Philip Elliott](https://time.com/author/philip-elliott/)  ## Philip Elliott Senior Correspondent May 12, 2025 9:57 PM UTC _This article is part of The D.C. Brief, TIME’s politics newsletter. Sign up_ [_here_](https://cloud.newsletters.time.com/signup?nln=dc-brief&source=dc%5Fonsite) _to get stories like this sent to your inbox._ Donald Trump just did the economic equivalent of Control-Alt-Delete on his trade policy. No, he didn’t fully retreat but he [backed down](https://time.com/7284765/us-china-trade-war-pause/) enough that he’s ceded almostall of his leverage. That does not mean he admitted the [chaos](https://time.com/7265843/tariffs-stock-market-trump/) he [unfurled](https://time.com/7280156/donald-trump-polling/) was an entirely unnecessary self-inflicted [trauma](https://time.com/7281690/donald-trump-dolls-tariffs-polls/)—or that he fully understands his role in sending the global economy into a freefall for more than a month. Before jetting off to the Middle East, the President on Monday climbed down from a scorched-earth tariff tift and pulled import taxes on goods coming from China from an eye-popping 145% down to a less harsh 30%. In turn, China downgraded its retaliation to 10% from 125%, giving legions of U.S. businesses hope that they could weather a standoff between two global leaders famous for their unbending nature. The added costs will still squeeze Americans who rely on cheap goods from China for day-to-day life, while the world’s two largest economies try to find a way out of their spiraling tit-for-tat standoff that roiled markets, shook consumer confidence, and shrunk the retirement accounts of millions of Americans. Even with the latest turnaround,U.S. consumersmay still see some empty shelves in the coming weeks as the supply chain falls off the cliff. And the average American family would still see a net hike of $2,300, according to a new Yale Budget Lab [analysis](https://budgetlab.yale.edu/research/state-us-tariffs-may-12-2025) released after Trump’s announcement. And, later Monday, White House aides [said](https://www.axios.com/2025/05/12/china-trade-deal-shein-temu-trump) the shift was not on _all_ China imports; low-dollar packages from online retailers like Shein and Temu would actually see their surcharges jump in June. Still, ever the salesman, Trump started a victory lap well past the starting line. "There's a big incentive for China to stop, and I take them at their word they're going to work on that, I think, very hard,” Trump told reporters at the White House on Monday. Trusting China has never been a good bet for U.S. policy. Taking Beijing “at their word” is for most Presidents code for being a sucker when it comes to promises of human rights, environmental safeguards, and global ambitions. Trump's stance runs completely counter to orthodoxy popularized by President Ronald Reagan: trust but verify. But U.S. investors for the moment are putting their trust in Trump’s ability to steer the economy out of a potential nosedive and toward a safe landing. Markets broadly surged as the Dow recouped its post-["Liberation Day"](https://time.com/7274039/trump-tariff-announcement/) losses sparked by Trump’s slapdash score settling. Since April 2, investors have been in open revolt over the tumult. At its lowest point, the Dow was down 14% from the day Trump took office. Before the pause was announced after trade talks in Geneva, the Dow was still down 6% from Inauguration Day levels. By the time markets closed on Monday, the rebound was complete, with traders actually up from January thanks to the biggest day of gains since tariffs tanked confidence. Trump, who has long shown an obsession with the stock markets as much as his polls, surely is taking the response as a win. The President’s unique flavor of grievance prompts him to see the U.S. economy as a perpetual victim of economic bullies and the bearer of bad actors. His protectionist advisers have encouraged his suspicions. But he also seeks approval, and whether it’s from polls or Wall Street’s Big Board, he reacts. His decision to pull back so strongly from the tariff stance he took just a few weeks ago showed just how reactionary and transactional this President can be. Still, Trump’s retreat on tariffs with China is not complete. Ninety days is some breathing room for consumers and investors alike, but it’s not forever. China is [painting](https://www.cnbc.com/2025/05/12/china-trade-trump-tariffs-beijing.html) the reversal as a victory on its side, likely nursing more resentment from Trump and his nationalistic pride. Trump’s defenders, meanwhile, are noting that the United States [collected](https://www.wsj.com/livecoverage/stock-market-today-tariffs-trade-war-05-12-2025/card/u-s-collected-a-record-16-3-billion-in-customs-duties-in-april-xgzJO1QrMJMzGev81FAH) more than $7 billion on import taxes in April compared to a month earlier. Now comes the spin contest. During his first term in office, Trump often used Potemkin announcements to declare victory in the hopes no one would follow up on the tangibles. Just look at the Foxconn [project](https://wisconsinindependent.com/infrastructure/trump-promise-manufacturing-miracle-failed-foxconn/) in Wisconsin: Trump promised 13,000 jobs and $10 billion investment there in 2017 and hyped it pretty relentlessly but it never came to pass. It was the same on his now-punchlined Infrastructure Week, a repeal of Obamacare, and a raise in family incomes by $4,000\. None of that happened**,** either. But here’s the thing with Trump and his followers: they often listen to the loudest voice in their ears, and it’s tough to credibly argue that anyone can project further than this President. That’s why this fallback on tariffs might be seen for a good chunk of this country as a victory despite evidence to the contrary. Facts—and 401(k) reports—may say one thing, but feelings have always shown more powerful than hard realities. _Make sense of what matters in Washington._ [_Sign up for the D.C. Brief newsletter_](https://cloud.newsletters.time.com/signup?nln=dc-brief&source=dc%5Fonsite)_._ ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/7285023/china-tariffs-prices-trump/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/7285023/china-tariffs-prices-trump/"},"headline":"With Tariff Retreat, Trump Cedes Leverage to China","datePublished":"2025-05-12T21:57:46.000Z","dateModified":"2026-03-11T00:29:44.600Z","description":"Trump said he took China \"at their word\" that they would address his trade concerns.","url":"https://time.com/7285023/china-tariffs-prices-trump/","keywords":["The D.C. Brief","Donald Trump"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blte93a243f8975e1df/6998c69483ec374532c7a959/GettyImages-2214705018.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Philip Elliott","jobTitle":"Senior Correspondent","url":"https://time.com/author/philip-elliott/"}],"articleSection":"Politics","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blte93a243f8975e1df/6998c69483ec374532c7a959/GettyImages-2214705018.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"President Trump Announces Plan To Reduce The Cost Of Prescription Drugs","caption":"President Trump Announces Plan To Reduce The Cost Of Prescription Drugs","creditText":"Andrew Harnik—Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/politics/","name":"Politics"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/the-dc-brief/","name":"The D.C. Brief"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/7285023/china-tariffs-prices-trump/","name":"With Tariff Retreat, Trump Cedes Leverage to China"}}]}] ```