The US and China wrapped up high-stakes trade negotiations on a positive note on Sunday, signaling potential progress in reducing the trade deficit between the two nations.
US officials emphasized a “deal” to address trade imbalances, while Chinese representatives hailed the discussions as leading to “important consensus” and the launch of a new economic dialogue forum.
Following two days of talks in Geneva, the sides refrained from releasing specifics, though Chinese Vice Premier He Lifeng indicated that a joint statement would be issued on Monday. Vice Commerce Minister Li Chenggang promised that the statement would bring “good news for the world.” U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described the talks as “constructive” and noted “substantial progress,” with further details expected soon.
US and China to Resume Trade Talks in Switzerland on Sunday
Despite these positive remarks, neither side mentioned a resolution to the ongoing issue of tariffs—currently at 145% on Chinese imports and 125% on U.S. goods. U.S. officials have previously characterized these duties as a trade embargo between the world’s largest economies and emphasized the need for de-escalation. Greer stated that the talks’ conclusion represented “a deal with our Chinese partners” that would help reduce the U.S. $1.2 trillion goods trade deficit.
“We were able to reach an agreement surprisingly quickly, which perhaps indicates that the differences between us were not as large as previously believed,” Greer remarked, acknowledging the “tough negotiators” on the Chinese side, including Vice Premier He and Vice Finance Minister Liao Min.
In a separate statement, Vice Premier He called the discussions “candid, in-depth, and constructive,” noting that the meeting had achieved “substantial progress” and “important consensus.” He added that the two nations had agreed to establish a new consultation mechanism for trade and economic issues, with further details to be finalized soon.
Turkey and Italy Pledge to Strengthen Defence Ties and Boost Trade
The talks took place against the backdrop of broader global concerns, with both governments seeking to stabilize their economic relations and ease tensions that have disrupted supply chains and led to rising costs. A positive outcome from these discussions could signal a shift in the ongoing U.S.-China trade war, which has already prompted job cuts and strained global trade dynamics.
The World Trade Organization (WTO) also played a key supporting role in the talks. WTO Director-General Dr. Ngozi Okonjo-Iweala welcomed the outcome, saying, “These discussions mark a significant step forward and, we hope, bode well for the future. Amid current global tensions, this progress is important not only for the U.S. and China but also for the rest of the world, including the most vulnerable economies.”
Okonjo-Iweala also emphasized the need for broader WTO reform, pointing to ongoing trade tensions as a “vital opportunity” to strengthen the multilateral trading system. “We must not waste a crisis,” she urged WTO members, while highlighting that the reform of the organization will be a central theme at the 14th Ministerial Conference (MC14) in 2026.
While neither side explicitly addressed the steep tariffs—145% by the U.S. and 125% by China—currently hampering nearly $600 billion in bilateral trade, U.S. officials hinted that tariff adjustments may be considered as part of future steps to de-escalate tensions.
China Strikes Back with Tariffs, Markets Shaken as US-China Trade War Deepens
The meeting was the highest-level economic engagement between the two nations since President Trump imposed sweeping tariffs as part of his “America First” trade policy. It also marked the first such interaction under the current administration, which has been defined by an aggressive posture on trade, including a declaration of national economic emergency over the U.S. trade deficit.
The talks took place at a secluded villa in Geneva, chosen for its neutrality and symbolic significance in global diplomacy. While officials from both countries were tight-lipped about the exact terms, they maintained that the discussions had “reset” relations in a “friendly but constructive” manner.
China Warns Countries Against Trade Deals with US at Its Expense
Markets and policymakers around the globe will now be watching closely for Monday’s joint announcement, hoping it will mark a turning point in the U.S.-China economic relationship and bring some stability back to global trade flows.
Meanwhile, the WTO remains poised to play a mediating role should future disputes arise. Though its dispute settlement system has been hampered by the U.S. blocking judicial appointments, Okonjo-Iweala reaffirmed the organization’s commitment to upholding multilateral principles and providing a forum for resolving future conflicts.
