The White House made a significant announcement on Sunday, revealing that a trade deal with China has been successfully negotiated following two days of intense discussions in Geneva. This news comes as a relief to many, particularly after the trade tensions that arose from former President Donald Trump’s imposition of 145% tariffs on Chinese goods.
During a press briefing, US Treasury Secretary Scott Bessent emphasized the “substantial progress” made during the negotiations with Chinese Vice Premier He Lifeng. This breakthrough is seen as a pivotal moment in the ongoing efforts to defuse the trade war between the world’s two largest economies. Bessent noted that further details regarding the agreement would be disclosed on Monday, stating, “I can tell you that the talks were productive.”
Bessent expressed his satisfaction with the discussions, highlighting the significance of the latest developments. “I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” he remarked to the press. Alongside Bessent, US Trade Representative Jamieson Greer hinted that a deal had indeed been reached, saying, “It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought.”
Greer also pointed out the critical context of these negotiations, noting that the United States faces a staggering $1.2 trillion trade deficit. In response to this economic challenge, President Trump declared a national emergency and imposed tariffs. Greer expressed confidence that the new deal with China would help to address this pressing issue.
Bessent confirmed that he had briefed President Trump on the progress made in Geneva. This meeting marked the first in-person interaction among Bessent, Greer, and He since the bilateral tariffs were enacted, which have significantly impacted trade between the two nations.
While Bessent acknowledged that the current tariffs are too high and need to be reduced, he refrained from providing specific details regarding any agreed-upon tariff reductions. Trump’s recent statements on his social media platform indicate optimism about the negotiations, as he mentioned that both parties were working towards “a total reset ... in a friendly, but constructive, manner.”
Furthermore, Commerce Secretary Howard Lutnick confirmed that the United States will maintain a 10% baseline tariff for the foreseeable future, even on imports from nations with which the US strikes new trade deals. This stance indicates that while progress is being made, the road to normalized trade relations may still be complex.
On Sunday, Kevin Hassett, the Director of the National Economic Council, commented on the potential for rebooting US-China relations. “It looks like the Chinese are very eager to play ball and renormalize things … they really want to rebuild a relationship that’s great for both of us,” he stated. This optimistic outlook suggests that both nations are ready to move forward in a collaborative manner.
In related news, Trump and UK Prime Minister Keir Starmer recently announced a limited bilateral trade deal, which Hassett described as a “really exciting blueprint.” He revealed that there are currently 24 additional trade agreements in the pipeline, each tailored to the specific needs of the involved nations.
Despite concerns regarding potential job losses among dock workers and truckers due to tariffs, Lutnick dismissed these worries, asserting, “This is just a China problem right now.” He added, “Prices are going to stay stable once this policy is done,” indicating a belief in the long-term stability of the market.
As negotiations continue and details of the trade deal emerge, all eyes will be on the evolving relationship between the United States and China, and the potential impacts on the global economy.
