U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced on Sunday the completion of a trade deal with China aimed at reducing the U.S. trade deficit, following two days of negotiations in Geneva. While specific details of the agreement will be shared on Monday, the officials described “substantial progress” in talks with Chinese Vice Premier He Lifeng and other high-ranking officials. The deal seeks to address the $1.2 trillion U.S. global trade deficit, although there was no mention of adjustments to existing tariffs—currently at 145% on Chinese goods and 125% on U.S. goods—imposed during President Trump’s administration to address trade imbalances and national emergency concerns. The Geneva meeting marked the first high-level face-to-face engagement between the two countries under Trump’s presidency. Greer emphasized the swift and constructive nature of the negotiations, suggesting reduced differences than previously assumed. White House economic adviser Kevin Hassett noted China’s eagerness to reach a resolution and indicated that more bilateral trade agreements with other countries may follow. China’s state media acknowledged the talks as a positive step, despite mutual distrust and low external expectations for a breakthrough.

Source: Reuters