The United States and China seem to have made a breakthrough in their long-running trade dispute, concluding two days of high-level talks in Geneva on a cautiously optimistic note.
Both economic superpowers claim they’ve made “substantial progress” amid simmering trade tensions and plan to launch an economic dialogue platform following negotiations.
US Treasury Secretary Scott Bessent went as far as touting a trade deal on Monday morning (local time), while Chinese officials said an “important consensus” had been reached.
Although neither side provided details of the deal, US Trade Representative Jamieson Greer and Mr Bessent described the meetings as productive.
Speaking to the press, Mr Greer referred to “a deal we struck with our Chinese partners”, aimed at reducing the US’ $US1.2 trillion ($1.9 trillion) goods trade deficit.
Chinese Vice-Premier He Lifeng said a joint statement would be released in Geneva on Monday.
He added that the agreement contained “good news for the world” and would outline a new consultation mechanism to manage trade and economic concerns going forward.
The talks, which took place at the residence of the Swiss ambassador to the United Nations, marked the first face-to-face meeting between senior US and Chinese economic officials since President Donald Trump’s return to office in January.
They follow months of escalating tariff measures, which have all but halted $US600 billion in annual bilateral trade.
While both parties refrained from announcing immediate tariff cuts, the discussions appear to have eased tensions between the world’s two largest economies, which have been locked in a bitter trade war since February.
Mr Trump, who recently accused Beijing of unfair trade practices and inaction on fentanyl trafficking, had recently floated the idea of reducing US tariffs on Chinese goods from 145 per cent to 80 per cent.
China had previously retaliated by hiking its tariffs on US goods to 125 per cent.
The weekend’s talks were widely scrutinised by markets and businesses, many of which have been rattled by supply chain disruptions and the economic uncertainty amid the trade dispute.
Analysts have warned that a prolonged impasse could tip the global economy into recession.
Although no concrete deal has been announced, World Trade Organization director-general Ngozi Okonjo-Iweala welcomed negotiations and urged both sides to build on the momentum.
“I am pleased with the positive outcome,” she said, calling on the US and China to use the opportunity to reduce trade tensions through continued dialogue.
Both delegations portrayed the meetings as respectful and constructive.
President Trump took to his social media platform to describe the negotiations as “a total reset”, praising the talks’ “friendly, but constructive, manner.”
His administration made it clear that trade rebalancing and curbing Chinese industrial policy remain central to its economic agenda.
China, meanwhile, reaffirmed its stance that it does not seek a trade war but would defend its national interests.
In comments published by the state-run Xinhua News Agency, Chinese officials said discussions with the US were a “positive and necessary step”, but reiterated their unwillingness to capitulate on controlling demands.
Even so, Swiss Economic Minister Guy Parmelin said the mere fact that talks took place was a success.
“If a road map can emerge and they decide to continue discussions, that will lower the tensions,” he said.
