Trump’s 2026 trade agenda sharpens push for ‘managed’ US-China ties

US President Donald Trump’s 2026 Trade Policy Agenda sharpens and, in some ways, reshapes Washington’s approach to Beijing, blending enforcement with a new emphasis on “managed” trade between the world’s two largest economies.United States Trade Representative (USTR) Jamieson Greer delivered the 2026 Trade Policy Agenda and 2025 Annual Report to Congress on Monday, highlighting a significant shift in the US-China trade relationship.Managing trade with China for “reciprocity and balance” is one of six priorities in the administration’s 2026 trade agenda.The others include expanding the Agreement on Reciprocal Trade programme to extract deeper market access while retaining tariff leverage; stepping up enforcement of trade deals and US trade laws; securing supply chains in critical sectors such as minerals, semiconductors and pharmaceuticals; launching a potentially contentious review of the US-Mexico-Canada Agreement; and promoting American interests in international forums, including efforts to reshape World Trade Organization rules.“The United States expects ongoing trade with China and will continue to engage to ensure that trade is based on reciprocity and balance,” the document states. It adds that by “managing bilateral trade with arrangements negotiated among each country’s political leaders,” the relationship can be improved for “fairness, balance, and predictability”.The agenda also claims early results. It says the US goods trade deficit with China fell 32 per cent year-over-year in 2025 and that, “for the first time since 2000, China is no longer the trading partner with which the United States has its largest trade deficit”.“In other words, in one short year, the United States has substantially diversified its import sources and reduced its import dependency on China.”