The United States and China concluded their high-level trade discussions on a positive note, with U.S. officials highlighting a “deal” aimed at reducing the U.S. trade deficit.
Chinese representatives noted that both sides had reached a “significant consensus” and agreed to launch a new economic dialogue platform.
Details of the agreement were not disclosed following the two-day talks held in Switzerland, which ended on Sunday.
Chinese Vice-Premier He Lifeng mentioned that a joint statement would be released in Geneva on Monday.
Vice-Commerce Minister Li Chenggang stated the announcement would include “good news for the world.”
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer also reported “substantial progress,” indicating more information would follow on Monday.
Neither party commented on any agreement regarding the reduction of U.S. tariffs—currently at 145%—on Chinese imports or China’s 125% tariffs on American goods.
Bessent and Greer did not take questions from the press.
Previously, the Treasury Secretary said these tariffs function as a de facto trade embargo between the world’s largest economies and called for de-escalation.
Financial markets have been closely watching for signs of easing tensions in the prolonged U.S.-China trade conflict, which has already disrupted supply chains, caused layoffs, and driven up wholesale prices.
Greer referred to the Geneva meetings as resulting in “a deal we struck with our Chinese partners” to help reduce the $1.2 trillion U.S. global goods trade deficit.
He emphasized the speed of the agreement as an indicator that the divide between the two nations may not have been as wide as once assumed.
Greer called his Chinese counterparts—Mr. He, Mr. Li, and Vice-Finance Minister Liao Min—”tough negotiators.”
At China’s WTO mission, Mr. He described the discussions as “candid, in-depth and constructive” and praised the progress made, which received applause from attending Chinese officials.
He also met with WTO Director-General Ngozi Okonjo-Iweala, who welcomed the talks’ outcome and encouraged both nations to continue reducing trade tensions.
The WTO had previously ruled against tariffs imposed by former President Trump on Chinese imports, but the appellate body has been stalled due to U.S. opposition to judge appointments.
New Dialogue Platform
Mr. He announced that the U.S. and China had agreed to create a new consultation framework for economic and trade issues, with specifics to be confirmed soon.
Over the years, both countries have formed various dialogue mechanisms—including the Economic Working Group set up by U.S. Treasury Secretary Janet Yellen and Mr. He in 2023—but these forums have yielded limited progress on shifting China’s state-led export economy toward a consumer-driven model.
First In-Person Talks
This marked the first direct meeting between senior U.S. and Chinese economic officials since President Trump’s imposition of sweeping tariffs and his declaration of a national emergency related to the fentanyl crisis.
Trump initiated a 20% tariff on Chinese goods in February, followed by a 34% “reciprocal” duty in April, with subsequent increases pushing tariffs into triple digits—effectively freezing nearly $600 billion in bilateral trade.
China had consistently demanded tariff reductions as part of any negotiations.
On Friday, Trump suggested for the first time a specific figure, saying an 80% tariff on Chinese goods “seems right.”
Greer said extensive preparation had been done ahead of the Geneva meetings, and the resulting agreement was designed to address the national emergency Trump had declared over rising U.S. trade deficits.
“We believe the agreement with our Chinese counterparts will help us move toward resolving that emergency,” Greer said.
A White House press release, echoing Bessent’s and Greer’s brief remarks without providing specifics, was titled: “US announces China trade deal in Geneva.”
More Trade Agreements Expected
Earlier Sunday, White House economic adviser Kevin Hassett stated that China was “very, very eager” to engage and rebalance trade with the U.S.
Hassett also mentioned on Fox News’s Sunday Morning Futures that additional trade deals with other countries might be announced as early as this week.
A recent limited agreement with the United Kingdom left in place 10% tariffs on numerous British products.
On his Truth Social platform, Trump praised the talks, calling them “a total reset … in a friendly, but constructive, manner.”
