Fact Sheet: President Donald J. Trump Secures a Historic Trade Win for the United States
5/12/2025
Action Summary
- Historic Trade Deal: President Trump secured a landmark agreement with China following a recent deal with the United Kingdom, aimed at addressing longstanding trade imbalances.
- Tariff Adjustments:
- China: Agreed to reduce its tariffs and eliminate retaliatory measures announced since early April 2025, including suspending its initial 34% tariff for 90 days while maintaining a 10% tariff.
- United States: Committed to removing additional tariffs imposed on April 8 and April 9, 2025, while retaining earlier tariffs (including Section 301, Section 232, fentanyl-related, and Most Favored Nation tariffs) and suspending a 34% reciprocal tariff for 90 days with a 10% retention.
- Reciprocal Measures: The agreement establishes reciprocal tariff reductions (115% reduction with an added baseline 10% tariff) to promote domestic production, bolster supply chains, and protect American workers.
- Continuation Mechanism: Both nations will set up a mechanism to sustain ongoing discussions about trade and economic issues, with representation from high-level officials on both sides.
- Addressing the Fentanyl Crisis: The deal includes coordinated efforts between the United States and China to aggressively curb the flow of fentanyl and its precursors into North America.
- Strategic Economic Impact: The agreement targets correction of the massive U.S. trade deficit with China ($295.4 billion in 2024) and aims to benefit American workers, farmers, and businesses.
Risks & Considerations
- The trade agreement between the United States and China, which includes significant tariff reductions, could impact Vanderbilt University’s research and educational programs that rely on international collaboration and funding. Changes in trade policies may affect the availability and cost of research materials and equipment sourced from China.
- The retention of a 10% tariff and the potential for future trade discussions may create uncertainty in the market, affecting the university’s financial planning and budgeting, particularly for programs that depend on international partnerships.
- The focus on addressing the fentanyl crisis through trade measures may lead to increased regulatory scrutiny and compliance requirements for research programs related to pharmaceuticals and public health at Vanderbilt.
- Vanderbilt University may need to consider the implications of these trade changes on its international student body, particularly those from China, as shifts in economic relations could influence student enrollment and funding opportunities.
Impacted Programs
- Vanderbilt’s International Programs may need to reassess their strategies and partnerships in light of the evolving U.S.-China trade relationship, ensuring continued collaboration and exchange opportunities.
- The School of Engineering and other departments that rely on imported materials and technology from China may face challenges in procurement and cost management due to the retained tariffs.
- Research initiatives focused on public health and pharmaceuticals may experience increased regulatory oversight, necessitating adjustments in compliance and reporting practices.
- The Office of Global Safety and Security might need to enhance its monitoring of geopolitical developments to support the university’s international community and ensure the safety of its students and staff abroad.
Financial Impact
- The reduction in tariffs could lead to cost savings for Vanderbilt University in terms of imported goods and services, potentially freeing up resources for other strategic initiatives.
- However, the ongoing trade negotiations and the retention of certain tariffs may introduce financial volatility, requiring the university to adopt flexible budgeting and financial planning approaches.
- Opportunities may arise for Vanderbilt to engage in research and development projects that align with national priorities, such as addressing the fentanyl crisis, potentially attracting federal funding and support.
- The university may need to explore alternative funding sources and partnerships to mitigate the impact of any adverse changes in the U.S.-China trade relationship on its programs and operations.
Relevance Score: 3 (The trade agreement presents moderate risks involving compliance and potential impacts on international collaborations and funding.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor the implications of the U.S.-China trade agreement, particularly in terms of research funding and international collaborations. Understanding the impact on tariffs and trade policies can help the university navigate potential changes in research material costs and partnerships with Chinese institutions.
- The Vanderbilt Center for International Business should explore opportunities to engage in research and discussions on the economic impacts of the trade agreement. By analyzing the effects on global trade dynamics, the center can provide valuable insights to policymakers and businesses.
- Vanderbilt’s Supply Chain Management Program should assess the potential impacts of the trade agreement on supply chain operations and strategies. This includes evaluating how changes in tariffs and trade policies might affect the sourcing and distribution of goods.
- The Vanderbilt Institute for Global Health should consider the implications of the agreement on public health, particularly in relation to the fentanyl crisis. Collaborating with international partners to address the flow of illicit drugs can enhance the university’s role in global health initiatives.
- Vanderbilt’s Political Science Department should conduct research on the broader geopolitical implications of the trade agreement. This research can provide insights into how the agreement might influence international relations and economic policies.
Opportunities
- The trade agreement presents an opportunity for Vanderbilt’s Business School to develop new programs focused on international trade and economic policy. By leveraging the expertise of faculty and industry partners, the school can offer cutting-edge education and training in this area.
- Vanderbilt can capitalize on the increased focus on trade and economic relations by hosting conferences and workshops on the implications of the U.S.-China trade agreement. This can position the university as a leader in the national and international conversation on trade policy.
- The emphasis on addressing the fentanyl crisis offers an opportunity for Vanderbilt’s Medical Center to engage in research and advocacy efforts. By providing evidence-based recommendations, the center can influence policies aimed at reducing the flow of illicit drugs and improving public health outcomes.
Relevance Score: 4 (The trade agreement presents potential for major process changes required for Vanderbilt’s programs due to impacts on research funding, international collaborations, and public health initiatives.)
Timeline for Implementation
- Directive Deadline: Both parties will take the outlined tariff-related actions by May 14, 2025.
- Tariff Suspension Duration: Certain tariffs will be suspended for 90 days, effective from the implementation date.
Determination: The shortest timeline directive is the May 14, 2025 deadline for implementing the tariff adjustments.
Relevance Score: 5
Impacted Government Organizations
- United States Trade Representative (USTR): The USTR is directly mentioned as the representative negotiating the trade deal with China, underscoring its role in shaping U.S. trade policy.
- Department of the Treasury: Represented by the Secretary of the Treasury, this department is tasked with implementing and overseeing tariff adjustments and related fiscal measures arising from the agreement.
Relevance Score: 1 (A very limited number of Federal Agencies are explicitly impacted by the deal.)
Responsible Officials
- Secretary of the Treasury (Scott Bessent) – Tasked with executing the U.S. tariff adjustments and related fiscal measures outlined in the trade agreement.
- United States Trade Representative (Jamieson Greer) – Charged with implementing the negotiated trade terms, including tariff modifications and establishing mechanisms for continued discussions.
- Vice Premier of the State Council (He Lifeng) – Responsible for overseeing China’s implementation of tariff reductions, tariff suspensions, and the removal of retaliatory measures as agreed.
Relevance Score: 5 (Directives affect top-tier Cabinet-level officials and their counterparts in China.)