US-China De-escalate Trade War, Report Progress In Geneva Trade Talks

The United States and China concluded two days of negotiations in Geneva and reported progress at addressing the longstanding US goods trade deficit and bilateral trade tensions. The meetings marked the first in-person engagement between senior economic officials from both countries since the Trump administration imposed steep tariffs.

On Sunday, the White House released statements from Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer confirming the progress. A full briefing is expected Monday. 

Bessent called the talks productive, while Greer said the deal came together quickly, suggesting that the differences may have been less significant than initially believed.

The discussions took place at the Geneva residence of Switzerland’s UN ambassador. Swiss officials had extended the invitation, serving as neutral hosts.

China’s Vice Premier He Lifeng, joined by Vice Commerce Minister Li Chenggang and Vice Finance Minister Liao Min, said the two sides had reached consensus and agreed to establish a new consultation platform focused on trade and economic issues. 

According to Reuters, this mechanism will continue discussions on bilateral matters and economic coordination.
There was no announcement regarding reductions in current tariffs. 

US tariffs on Chinese goods stand at 145%, while China maintains a 125% rate on US goods. These measures, introduced in response to what the Trump administration has called unfair trade practices, remain in effect.

Despite the absence of tariff concessions, Greer described the result as “a deal we struck” that he believes will help reduce the $1.2 trillion US global trade deficit. Both Bessent and He stated that the agreement addresses the national emergency declared by President Trump in response to trade imbalances and disruptions to supply chains.

He Lifeng described the talks as “candid and in-depth” and confirmed the agreement to launch a bilateral economic dialogue. The move follows a pattern of earlier efforts to establish structured forums for trade discussions.

The Trump administration began its tariff campaign with a 20% levy on Chinese goods in February, followed by a 34% reciprocal tariff in April. Subsequent rounds increased rates into the triple digits, bringing significant portions of two-way trade to a halt.

White House economic adviser Kevin Hassett stated on Sunday that additional trade deals may be forthcoming, including agreements with countries beyond China. Hassett said Commerce Secretary Howard Lutnick and Greer are currently working on more than 20 potential trade arrangements, some modelled after a recent limited agreement with the United Kingdom.

Further details of the Geneva agreement are expected to be released in a joint statement on Monday. Until then, the specific terms remain undisclosed. The direction of future negotiations, particularly on tariffs and broader economic policy, will likely be shaped by the newly established consultation mechanism.