Saturday, March 29, 2025
In a significant development for the global economy, the United States and China concluded a high-level trade dialogue on a positive note this weekend in Geneva. Both sides confirmed that they reached a consensus, and today, they jointly released the details of a trade agreement that may signal the end of years-long tariff tensions.
US Treasury Secretary Scott Bessent and Trade Representative Jamison Greer led the American delegation. Chinese Vice Premier He Lifeng and Vice Commerce Minister Li Chenggang represented China. The meetings, held at the Swiss UN ambassador’s residence, marked the first face-to-face economic negotiations under President Donald Trump’s current term.
Greer announced that the agreement could help reduce America’s $1.2 trillion global trade deficit. He emphasized the quick progress made during talks and highlighted the constructive approach from both sides.
China’s Vice Premier Lifeng called the discussions meaningful and said they laid a strong foundation for future economic cooperation. He praised the meeting’s tone and acknowledged the WTO’s support. WTO Director-General Ngozi Okonjo-Iweala welcomed the agreement, urging both nations to maintain this momentum.
Despite the optimism, neither side has yet confirmed reductions to the steep tariffs that triggered the trade war. Since February, the US imposed tariffs of up to 145% on Chinese goods. China retaliated with 125% duties on American products. These actions froze nearly $600 billion in annual trade.
Over the weekend, President Trump hinted that an 80% tariff on China might still be “reasonable,” suggesting further negotiations on tariff cuts could follow. Meanwhile, the White House issued a brief press release confirming the agreement but avoided revealing any specific clauses.
Economic Adviser Kevin Hassett indicated that China is eager to restore trade balance and willing to engage in more trade negotiations. He also suggested that the US may strike new deals with other countries this week, referencing recent progress on a limited agreement with the UK.
The two countries also agreed to establish a new consultation mechanism for economic dialogue. This will build on the ‘Economic Working Group’ created in 2023 by then Treasury Secretary Janet Yellen and Vice Premier He Lifeng.
Analysts view this breakthrough as a positive signal for global markets. The prolonged US-China trade war disrupted supply chains, drove up business costs, and pushed the world economy closer to recession. Monday’s stock markets reflected renewed investor confidence in response to the deal.
The deal’s impact depends on how both governments implement it and whether it leads to lasting tariff relief. However, for now, today’s US-China trade deal details represent a welcome shift toward economic stability.
