President Donald Trump unveiled his 2026 Trade Policy Agenda. He targets managed trade with China. The US Trade Representative released the report on Monday. It stresses reciprocity and balance in US-China ties. Trump aims to reshape relations ahead of his Beijing summit with Xi Jinping.

US Trade Representative Jamieson Greer presented the agenda and 2025 Annual Report to Congress. The document lists six priorities. It promotes ongoing trade with China under fair terms. Leaders negotiate arrangements for fairness and predictability. The US goods trade deficit with China dropped 32 percent in 2025.

China no longer holds the largest US trade deficit since 2000. The US diversified import sources. It reduced reliance on China. The agenda pushes enforcement of Section 301 tariffs. It expands reciprocal trade deals. It secures supply chains in minerals, semiconductors, and drugs.

Trump and Xi met in South Korea recently. They eased tariffs and export curbs. China pledged more agricultural buys. Tensions persist over soybeans, rare earths, and Taiwan. Lawmakers fear fractures in relations. Rep. André Carson warned of China’s export control power.

Experts predict selective decoupling. Bilateral trade may halve from pre-2017 levels. China builds self-reliant chains. Trump offers farmer subsidies amid disruptions. Negotiations focus on technical issues now. Future summits loom with risks of new tariffs and sanctions.