The Josh Lafazan Show on YouTube - Episode 108

U.S. & China SIGN Major Trade Deal – Smart Move or Short-Lived Peace? 

The Josh Lafazan Show on YouTube - Episode 108

The U.S. and China — the globe’s two largest economies — have agreed to a 90-day trade truce. The question is: Is this a path to lasting stability, or just a temporary timeout before the next trade war escalation?

According to the New York Times, after months of tit-for-tat tariffs that pushed global trade to the brink, the U.S. and China have reached a short-term agreement to reduce and suspend major tariff hikes. Both countries took a step back from the edge — but only for 90 days, until May 14th.

Here’s what’s in the deal, per the BBC:
🔹 The U.S. will reduce recent tariff increases on Chinese imports — from 145% to 30%.
🔹 China will slash its retaliatory tariffs on American goods from 125% to just 10%.
🔹 China has also suspended several non-tariff responses — including halting critical mineral exports to the U.S.
🔹 A key 20% U.S. tariff remains, aimed at pressing China on its role in the U.S. fentanyl crisis.

The talks that produced this agreement were held in Switzerland — the first major dialogue between the two nations since Trump reignited the tariff war. U.S. Treasury Secretary Scott Bessent said both sides agreed that “neither wants a decoupling,” while China’s Commerce Ministry described the deal as a step toward deeper cooperation.

And Wall Street? It’s loving the news — for now.
📈 The Nasdaq jumped 4.3%, entering a new bull market.
📈 The Dow Jones surged more than 1,100 points — erasing the losses from Trump’s “Liberation Day” tariff hike.
📉 Meanwhile, gold prices — a traditional safe haven — dropped 3.4%, signaling reduced market panic.

But let’s not lose sight of why this all happened in the first place:
This trade war was entirely Trump’s doing. In April, Trump launched an aggressive tariff blitz that sent economic shockwaves around the globe. Per Politico, those tariffs were so punishing they nearly halted all Chinese exports to the U.S., creating the most serious trade disruption since the COVID pandemic.

And no — despite what Trump’s loyalists say — he did NOT “win” the trade war.
Here’s what actually happened:
❌ Consumer confidence cratered
❌ Retail spending slumped
❌ Tourism plummeted
❌ Business investment dried up
❌ Markets shed trillions in value
❌ Recession risk is now pegged at 60%
All of this was entirely avoidable — had Trump not reignited a crisis for no clear strategic gain.

Contrast this chaos with where we were under President Biden:
✔️ Sub-4% unemployment
✔️ Strong GDP growth
✔️ Record-breaking COVID recovery
The economy was on fire — and Trump came in swinging with a gas can.

Even now, the Trump administration continues to make headlines for all the wrong reasons. While the U.S. economy is still licking its wounds from his trade tantrum, Trump is making moves like accepting a $400 million luxury jet from Qatar — raising serious questions about corruption, foreign influence, and the Emoluments Clause. More on that in another episode — but it perfectly highlights the chaos Trump brings to the global stage.

And while this 90-day truce is welcome news, it doesn’t address the deeper problems at the heart of the U.S.-China relationship. As Reuters reports, the trade deficit, the fentanyl crisis, and national security concerns still loom large.

So what happens after May 14th? Do the tariffs come roaring back? Will Beijing hold up its end of the bargain? Can we trust the Trump White House to lead with stability — or will this be another case of policy whiplash?

Today’s episode breaks it all down:
🧠 What’s really in this new U.S.-China trade deal
💰 How the market is reacting — and why it matters
📉 What Trump’s trade war has already cost Americans
⚠️ Why tariffs al