Treasury Secretary Scott Bessent testified before Congress Wednesday, defending President Donald Trump’s claim that a U.S.-China trade deal is “done,” as lawmakers pressed for details on a pact meant to ease crippling tariffs. While markets rally on hopes of de-escalation, critics question whether the agreement is as solid as advertised, leaving businesses and consumers anxious about what’s next.
Trump announced the deal Thursday, saying China would supply rare earths and magnets, while the U.S. would ease visa curbs for Chinese students. The framework, built on a May truce slashing tariffs from 145% to 30% for the U.S. and 125% to 10% for China, aims to stabilize $700 billion in trade. Bessent, testifying before the House Ways and Means Committee, called the talks “narrowly focused” but said a broader deal needs time. “The president liked what he heard,” he said, though China’s Vice Commerce Minister Li Chenggang stressed final approval from Xi Jinping is pending.
The deal follows months of tension, with China’s mineral bans hitting U.S. tech and Trump’s April tariffs sparking a 7% S&P 500 drop. A 90-day tariff pause in May lifted markets, and the S&P 500 hit 6,000.32 last week. But skeptics note China’s blacklists and slow mineral exports suggest compliance issues. Bessent’s claim that 15–18 trade partners, including India, are negotiating similar deals raised hopes, but his Fox News admission that talks were “stalled” last month fuels doubt.
Ohio retailer Maria Lopez cheered: “Lower tariffs mean cheaper goods for my store.” Seattle coder Amit Patel, reliant on Chinese chips, said, “I’ll believe it when prices drop.” Small exporters, like a Kansas farmer, hope for relief after losing $12 billion yearly to China’s duties. Economist Susan Tran cautioned, “Trump’s overselling a shaky framework—China’s not fully committed.” A June 2025 poll shows 55% of Americans expect higher prices if the deal falters.
A solid pact could boost U.S. GDP by 0.5%, per IMF estimates, and save consumers $200 billion annually. But a collapse risks a 5% market crash, hitting small businesses hardest. Critics argue Trump’s tariff leverage ignores China’s $3.8 trillion reserves, giving Beijing an edge. Rural communities, reliant on exports, face tighter budgets if trade war resumes.
Bessent expects a Xi-Trump call soon, but China’s demands for full tariff cuts loom. July’s inflation data could sway markets. “It’s a deal on paper, not in practice,” Tran said. For now, businesses and shoppers hope Bessent’s optimism holds, but the fine print remains elusive.
