U.S.-China Trade Talks Show Signs of Progress
GENEVA: During a series of discussions held over the weekend in Geneva, U.S. Secretary of the Treasury Scott Bessent and U.S. Trade Representative Jamieson Greer announced notable advancements in efforts to relieve trade tensions between the United States and China, which have escalated due to President Donald Trump’s aggressive imposition of tariffs.
The ongoing conflict between Washington and Beijing has destabilized financial markets and ignited concerns over a potential global economic downturn, alongside worries of rising inflation in the U.S.
“We’ve made significant headway in these crucial trade negotiations,” Bessent informed reporters on Sunday as the discussions wrapped up. He opted not to take questions but assured a comprehensive briefing would be delivered on Monday regarding the outcomes.
In an official statement released by the White House, a "new trade deal" with China was praised, though specifics were scant.
Chinese Vice Premier He Lifeng echoed Bessent’s optimism, stating that the negotiations had resulted in "substantial progress" and described the atmosphere of the talks as "open, in-depth, and constructive." He remarked, “This represents an important first step,” indicating plans for a joint communique to be disseminated on Monday.
Both delegations agreed to establish a joint communication mechanism focusing on “regular and irregular discussions regarding trade and commercial issues,” according to China’s international trade representative, Li Chenggang.
When questioned about whether the communique would be available before financial markets opened, Li remarked, “If the results are satisfying, timing is secondary. Whenever it is released, it will be significant, positive news.”
This weekend’s meetings were the first high-level face-to-face trade discussions since Trump imposed steep tariffs on China, with some reaching a staggering 145%. In retaliation, China responded with substantial tariffs on U.S. goods, hitting as high as 125%.
“This significant progress could bode well for the future,” stated World Trade Organization head Ngozi Okonjo-Iweala after her own meeting with He Lifeng. She emphasized that this progress is vital not only for the U.S. and China but also for the global community, especially the most vulnerable economies.
Optimism Amid Challenges
Wendy Cutler, Vice President of the Asia Society Policy Institute, expressed encouragement after the more than 15 hours of discussions took place. She noted, “That’s a considerable amount of time for a meeting between two countries, which I interpret positively.”
Before the talks, Trump hinted at a possible reduction in tariffs, suggesting on social media that “an 80% Tariff on China seems right!” However, White House Press Secretary Karoline Leavitt later clarified that any tariff reductions would not be unilateral; concessions from China would also be required.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, pointed out that while the fact that negotiations are occurring is a positive sign for businesses and markets, he remained skeptical about a return to normal trade relations, indicating that even a tariff of 70-80% could reduce bilateral trade significantly.
Cutler highlighted, “The success of these discussions will depend on the specifics. The details are crucial to evaluating whether these talks were effective.”
Looking Ahead
Chinese Vice Premier He Lifeng entered the negotiations with optimism following positive news on Friday regarding China’s exports, which unexpectedly rose last month despite the ongoing trade conflict. Experts attribute this shift to a re-routing of trade flows through Southeast Asia to navigate U.S. tariffs.
This meeting in Geneva followed Trump’s announcement of a trade agreement with Britain, marking the first deal made since the introduction of global tariffs. The non-binding five-page agreement reassured markets that Washington is willing to consider sector-specific relief from recent duties, although a 10% levy on most British goods remains in place.
In a post on Truth Social, Trump declared that the talks had made “GREAT PROGRESS!!” He added, “For the benefit of both China and the U.S., we aspire to see increased opportunities for American businesses in China.”
