US and China Reach Breakthrough Trade Deal in Geneva: Path Cleared for Economic Cooperation
After two days of tense negotiations in Geneva, the United States and China have reached a critical trade agreement that establishes a formal consultation mechanism to address ongoing economic disputes. This diplomatic breakthrough marks the first substantial progress in months amid an escalating trade war that saw both nations imposing steep tariffs on each other’s goods. While the full terms of the agreement remain undisclosed, both delegations expressed optimism about the framework’s potential to ease tensions and foster cooperation.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer highlighted the agreement as a step toward resolving the massive $295.4 billion trade deficit between the two nations. Greer reiterated that the administration’s imposition of tariffs—145% on Chinese imports and 125% on American goods—was part of a broader strategy to rebalance trade and address what the president had called a national emergency. He expressed confidence that the Geneva accord would contribute meaningfully to achieving those goals.
China’s Vice-Premier He Lifeng emphasized Beijing’s willingness to engage in sustained dialogue through the newly created consultation mechanism. Speaking to reporters, he stressed that China seeks to “make the pie of cooperation bigger” with the U.S., signaling a shift toward collaboration without compromising strategic interests. Both sides appear to have prioritized constructive engagement over confrontation, even as they navigate complex economic agendas.
The global economy has been heavily impacted by the prolonged U.S.-China trade standoff. Retailers and economists have warned of inflationary pressures, supply chain breakdowns, and a heightened risk of global recession if a resolution is not found. The Geneva discussions appear to have temporarily calmed market anxieties, though officials caution that full stability will depend on the successful implementation of the agreement and continued transparency in future negotiations.
As details of the deal are expected to be released Monday, investors and policymakers are watching closely. Commerce Secretary Howard Lutnick praised the negotiation team for helping to reset the tone of U.S.-China trade relations. Meanwhile, President Trump maintains that tariffs remain a critical tool to force fairer trade terms and revive domestic manufacturing. With economic stakes this high, the world is waiting to see whether this accord is a turning point or just a temporary pause in the global trade conflict.
Source: Nairametrics