China and the US praise “constructive” trade negotiations in Geneva; details are anticipated on Monday

U.S. officials hailed a “deal” to lower the U.S. trade imbalance as the high-stakes trade negotiations came to a successful conclusion on Sunday. Chinese authorities said the parties had established “important consensus” and decided to establish a new venue for economic communication.

After two days of meetings in Switzerland, neither party disclosed any information. Chinese Vice Premier He Lifeng announced Monday that a joint statement would be made public in Geneva. Vice-Minister of Commerce Li Chenggang said that it will provide “good news for the world.”

The “substantial progress” was reported by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, who both stated that specifics would be revealed on Monday.

Both parties made no mention of any deal to lower China’s 125% tariffs on U.S. goods and the U.S. 145% duties on Chinese goods in separate briefings with reporters.

There were no questions from reporters for Greer or Bessent. As previously stated by the head of the U.S. Treasury, these levies must be “de-escalated” because they constitute a trade embargo between the two biggest economies in the world.

A sour trade war between the United States and China has already started to cause supply chain disruptions, layoffs, and an increase in wholesale costs, and financial markets have been waiting for indications of a thaw.

Greer characterized the completion of the Geneva sessions as “a deal we struck with our Chinese partners” that will contribute to a reduction in the $1.2 trillion global goods trade deficit of the States.

“And this was, as the secretary pointed out, a very constructive two days,” Greer continued. “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,” said Greer.

Vice Finance Minister Liao Min, He, and Li were referred to as “tough negotiators” by the U.S. trade head.

Vice Premier Addressing reporters at China’s World Trade Organization mission, he said the discussions were “candid, in-depth and constructive” on matters that both nations were concerned about.

“The meeting achieved substantial progress, and reached important consensus,” he remarked, to the cheers of the several hundred Chinese officials in attendance at the WTO office.

He also met with Ngozi Okonjo-Iweala, the director general of the World Trade Organization, who expressed her satisfaction with the negotiations’ “positive outcome” and encouraged the two nations to continue their pace in reducing trade tensions.

Although the WTO has ruled against Trump’s previous levies on Chinese imports, the U.S. has blocked judge selections, which has caused the cases to stagnate in the WTO’s paralyzed appellate body.

ANOTHER CONSULTATION SYSTEM

A new consultation mechanism for trade and economic issues was agreed to be established between the United States and China, with pertinent details to be finalized as soon as possible. He said.

The Economic Working Group, which was formed in 2023 by Vice Premier He and former President Joe Biden’s Treasury secretary Janet Yellen, is one of many consultative committees that the U.S. and China have formed in recent decades to try to resolve trade and economic disagreements.

Although Washington has long sought to change China’s state-dominated, export-driven economic model to one centered on consumer spending, these discussions have only served as platforms for discussing bilateral concerns.

FIRST CONFERENCE

When Trump entered office, he declared a national emergency over the U.S. fentanyl epidemic, imposed a 20% tariff on Chinese imports in February, and began a global tariff blitz. This meeting was the first time senior U.S. and Chinese economic officials have met.

In response, Trump imposed a 34% “reciprocal” levy on Chinese goods in April. Subsequent rounds of tariffs drove the rates into triple digits, halting roughly $600 billion in two-way commerce.

China had demanded that any negotiations include a reduction in tariffs. On Friday, Trump stated that an 80% tariff on Chinese goods “seems right,” setting a clear reduction goal for the first time.

The Geneva sessions on Saturday and Sunday were preceded by extensive preparation, according to Greer, and the outcome would solve the national emergency that Trump proclaimed due to the widening trade deficits in the United States.

“We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency,” stated Greer.

Bessent and Greer’s brief remarks were repeated in a White House news statement with the heading, “U.S. announces China trade deal in Geneva,” but it had no further information.

MORE DEALS ON TARIFFS

White House economic adviser Kevin Hassett stated earlier Sunday that the Chinese were “very, very eager” to have talks and rebalance trade relations with the United States.

More international trade agreements with other nations may be in the works as early as this week, Hassett also stated on Fox News’ Sunday Morning Futures program. Many UK items are still subject to 10% U.S. charges as a result of last week’s limited trade agreement with Britain.

“U.S. Commerce Secretary Howard Lutnick briefed me on two dozen pending deals in development with USTR Greer,” Hassett added.

“They all look a little bit like the UK deal but each one is bespoke,” Hassett claimed.

Trump wrote on his Truth Social social media site that the two parties had negotiated “a total reset… in a friendly, but constructive, manner.” He gave a positive assessment of the negotiations overnight.

THE GATED VILLA

Teams convened in Switzerland’s U.N. ambassador’s guarded home in the lush district of Cologny, with a view of Lake Geneva. Bright sunshine filled the air as black Mercedes vans with sirens were driven to and from the event.

Following the actions of Swiss lawmakers during recent trips to China and the United States, neutral Switzerland was selected as the location.

In order to close its $295 billion goods trade imbalance with Beijing, Washington is trying to convince China to abandon what it refers to as a mercantilist economic model. This change would necessitate politically delicate domestic modifications.