GENEVA, Switzerland (Diya TV) — The United States and China have reached a breakthrough trade agreement following two days of high-level negotiations in Geneva, signaling a potential thaw in a years-long economic standoff between the world’s two largest economies.
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer led the American delegation, while China was represented by its vice premier and two vice ministers. The talks were hosted by the Swiss government and concluded over the weekend, marking what Bessent called “substantial progress” in resolving key trade disputes.
“We will be giving details tomorrow, but I can tell you that the talks were productive,” Bessent said in a statement released by the White House on Sunday. “The Swiss government has been very kind in providing us this wonderful venue, and I think that led to the great deal of productivity we’ve seen.”
President Donald Trump hinted at a softening stance ahead of the talks, indicating he was willing to lower tariffs on Chinese goods from 145% to 80%. In a post on his Truth Social platform, Trump wrote, “A very good meeting today with China, in Switzerland. Many things discussed, much agreed to.” He added that the talks marked “a total reset… in a friendly, but constructive, manner.”
Greer noted that the swift pace of the negotiations suggested the differences between Washington and Beijing may not have been as vast as previously believed. “It’s important to understand how quickly we were able to come to an agreement, which reflects that perhaps the differences were not so large as maybe thought,” he said. “That being said, there was a lot of groundwork that went into these two days.”
The deal comes as the United States faces a $1.2 trillion trade deficit, which has led the Trump administration to declare a national economic emergency and impose steep tariffs on Chinese imports. “We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency,” Greer added.
White House economic adviser Kevin Hassett told Fox News that the Chinese delegation appeared “very, very eager” to rebalance trade ties with the United States. He also suggested that more international trade agreements could be announced “as early as this week.”
While the details of the new agreement remain under wraps until Monday, analysts say the development could significantly reshape global trade dynamics. The prior escalation of tariffs had benefited countries like India, as U.S. importers began sourcing goods from alternative markets. According to The Economic Times, some Chinese exporters had even approached Indian suppliers to fulfill orders in a bid to retain U.S. clients.
However, a potential easing of tariffs on Chinese goods could diminish those gains. India, currently in its trade discussions with the United States, may find reduced leverage as Chinese firms regain competitiveness. “A deal that results in lower tariffs on Chinese goods could weaken the role of Indian suppliers.”
Despite a reported 20% drop in China’s exports to the U.S. in April, China’s overall exports rose by 8.1% year-over-year, driven by strong performance in the ASEAN region and other global markets, according to China’s Ministry of Commerce.
As the world awaits the official release of the agreement’s terms, both governments appear optimistic. “We want to see, for the good of both China and the U.S., an opening up of China to American business,” Trump wrote. “GREAT PROGRESS MADE!!!”
The deal could mark a turning point in U.S.-China relations, which have been strained by tariffs, geopolitical rivalries, and economic policy disputes. Whether it leads to long-term stability or is merely a reprieve remains to be seen.
