In a major breakthrough, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday that the US trade deficit with China had been agreed to be cut by a deal negotiated over two days in Geneva. The officials said “substantial progress” had been made with Chinese Vice Premier He Lifeng and other high-ranking officials, but refused to give details in advance of a Monday announcement.
Bessent confirmed that President Donald Trump had been fully informed of the result of what he described as “productive talks.” But officials did not signal any shift in the draconian tariffs 145% on Chinese imports and 125% on US exports that have effectively halted nearly $600 billion in trade between the two countries.
Greer cited the pact as a critical move towards reducing the $1.2 trillion US trade deficit in goods and commended the rapidity of negotiations, indicating the gaps could have been smaller than thought. He attributed Vice Premier He and his staff to be “tough negotiators” and said the pact goes some way in solving the trade emergency President Trump declared.
The Geneva gathering was the first direct interaction between top economic officials of the two nations since Trump imposed successive rounds of tariffs, starting with a national emergency declaration on fentanyl imports and escalating into a full-blown trade standoff.
Trump indicated hope about the negotiations, calling the result “a total reset” in a positive tone. He also suggested that an 80% tariff ceiling on Chinese imports might be possible, a significant departure from earlier statements.
China has long insisted on reductions in tariffs as a condition to any trade pact. The talks, being conducted in a private Swiss villa, are part of the larger United States bid to obtain bilateral trade agreements, including negotiations with the UK and other trading partners recently.
