2025-05-11T20:15:12Z

---

In a significant development regarding international trade relations, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced on Sunday that they have reached an important agreement with China aimed at addressing the persistent US trade deficit. This announcement followed two days of high-level negotiations in Geneva with Chinese officials, notably involving Chinese Vice-Premier He Lifeng and two vice-ministers.

During a press briefing, Mr. Bessent remarked on the outcomes of the discussions, stating that comprehensive details regarding the agreement would be revealed on Monday. Notably, he emphasized that US President Donald Trump is fully informed about the productive nature of these talks, which could signal a shift in the often contentious trade dynamics between the two economic powerhouses.

However, it is essential to note that both Mr. Bessent and Mr. Greer refrained from discussing any specific plans regarding the reduction of existing tariffs—currently set at an exorbitant 145 percent on Chinese imports and 125 percent on American goods. In previous statements, Mr. Bessent highlighted the detrimental impact these tariffs have on trade relations, describing them as akin to a trade embargo that necessitates a de-escalation for both countries to move forward.

Mr. Greer characterized the conclusion of the Geneva talks as a significant breakthrough, stating, “this is a deal we struck with our Chinese partners” that aims to reduce the staggering $1.2 trillion US global goods trade deficit. He further remarked on the efficiency of the discussions, suggesting that the speed at which an agreement was reached indicates that the differences in perspectives may not have been as vast as previously assumed.

This meeting marked the first direct engagement between senior US and Chinese economic officials since President Trump took office. His administration had taken a hardline stance on trade, initiating a comprehensive tariff strategy beginning with a declaration of a national emergency over the US fentanyl crisis, which included a 20 percent tariff on Chinese imports in February. Subsequently, this escalated to a 34 percent reciprocal duty in April, with later rounds pushing tariff rates to triple digits, effectively halting nearly $600 billion in two-way trade.

China had persistently urged for a reduction in tariffs as a condition for any negotiations. Just a few days prior to the Geneva talks, President Trump indicated that a proposed 80 percent tariff on Chinese goods “seems right,” thereby introducing a specific target reduction for the first time in public discourse.

Mr. Greer acknowledged that significant preparatory work had been undertaken before the Geneva meetings commenced, and he expressed confidence that the resultant agreement would address the national emergency invoked by President Trump concerning escalating US trade deficits. “We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency,” Mr. Greer concluded.

This announcement has the potential to reshape the trajectory of US-China trade relations and may provide a path toward stabilizing economic interactions between the two nations.