The United States and China held trade talks in Geneva, reporting meaningful progress toward easing tensions. Led by Treasury Secretary Scott Bessent, the U.S. side engaged with Chinese officials who emphasized national principles, while President Trump hinted at a tariff reset. Both nations agreed to a 90-day pause in the trade war, lowering tariffs by 115% and committing to further talks aimed at stabilizing global markets.
Image credit: Freepik
After months of escalating trade tensions and a spiraling tariff war, the United States and China have taken a major step toward stabilizing their economic relationship. China and the US have agreed to a 90-day pause in the deepening trade war that has threatened to upend the global economy, with reciprocal tariffs to be lowered by 115%.
The decision was made after two days of intense, high-level negotiations in Geneva, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced that both nations had reached a trade agreement aimed at easing long-standing disputes and rebalancing trade relations.
The talks were held in the quiet Swiss suburb of Cologny, inside a villa that served as neutral ground for the delegations. The U.S. delegation met with Chinese Vice Premier He Lifeng, Vice Commerce Minister Li Chenggang, and Vice Finance Minister Liao Min—marking the first direct engagement between senior economic officials from both sides since President Donald Trump’s administration initiated its global tariff campaign earlier this year.
“We made substantial progress between the United States and China in the very important trade talks,” said Bessent, adding that the discussions were both “productive” and “encouraging.” He credited the Swiss government for providing a secure and conducive environment for the landmark discussions and promised further details in a joint statement set to be issued on May 12.
Ambassador Greer echoed the optimism, describing the negotiations as “very constructive.” He emphasized the swiftness with which both sides were able to arrive at an understanding. “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. “There was a lot of groundwork that went into these two days.”
Speaking to the media after the talks in Geneva, the US Treasury Secretary, Scott Bessent, said both sides had shown “great respect” in the negotiations. Bessent stated: “The consensus from both delegations this weekend was neither side wants a decoupling.” The 90-day lowering of tariffs applies to the duties announced by Donald Trump on April 2, which ultimately escalated to 125% on Chinese imports, with Beijing responding with equivalent measures. China also imposed non-tariff measures, such as restricting the export of critical minerals essential to U.S. manufacturing of hi-tech goods.
The negotiations come on the heels of a trade crisis declared by President Trump earlier this year. With the U.S. facing a staggering $1.2 trillion trade deficit—much of it attributed to its trading relationship with China—the administration imposed steep tariffs on Chinese imports. In retaliation, China levied equally punishing duties on U.S. goods. The tit-for-tat measures have effectively frozen nearly $600 billion in bilateral trade, dealing blows to industries on both sides of the Pacific.
During the talks, Beijing proposed a temporary reduction in tariffs on U.S. goods—from 125% to 10%—for a 90-day period. In response, the United States offered to lower its tariffs on Chinese imports from 145% to 30%, signaling a mutual willingness to ease trade tensions and move toward a more balanced relationship.
President Trump offered a positive outlook in a post on his Truth Social platform, calling the talks “a total reset… in a friendly, but constructive, manner.” He added, “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”
Chinese Vice Premier He Lifeng also hailed the outcome of the talks, noting that the two sides had reached “important consensus” and that the Geneva meeting marked an “important first step.” He reiterated China’s readiness to continue engaging constructively with the U.S. to resolve outstanding trade issues.
While specific terms of the agreement are yet to be released, officials from both nations hinted that the accord includes provisions for improved market access, enhanced intellectual property protections, and mechanisms for ongoing dialogue to prevent future escalations. The joint statement expected on May 12 will likely provide clarity on these details.
White House economic adviser Kevin Hassett suggested that China was “very, very eager” to negotiate and added that the outcome of the Geneva talks could pave the way for a broader realignment of U.S. trade policy. “What we’ve seen is that diplomacy still works,” Hassett said. “This could be the start of a new chapter in global trade.”
The breakthrough in Geneva is being seen by many as a much-needed pause in a trade conflict that had threatened global economic stability. While the path ahead remains uncertain, the willingness of both sides to come to the table and make tangible progress offers a hopeful signal to businesses, markets, and governments worldwide.
