US and China conclude Geneva trade talks with positive signals, details to be announced today

Geneva talks make 'significant progress'

US officials said the two sides had reached an "agreement" to reduce the US trade deficit, while China said it had reached "important consensus" and agreed to launch a new economic dialogue forum.

Although neither side has released specific details of the agreement, Chinese Vice Premier He Lifeng said a joint statement would be issued in Geneva today. Chinese Vice Commerce Minister Li Chenggang said the statement would bring "good news to the world ."

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer also stressed that there had been “significant progress” in the talks, and would announce details early next week.

However, neither side mentioned cutting the 145% tariff that the US imposed on Chinese goods and the 125% that China imposed in return.

Greer described the outcome in Geneva as “an agreement that we reached with our Chinese counterparts” that would help reduce the US’s global goods trade deficit, which currently stands at $1.2 trillion. He said the discussion was “very constructive” and moved quickly, suggesting that the differences may not be as large as many people think.

The Chinese vice premier said the talks were "frank, in-depth and constructive", with clear progress and important consensus reached between the two sides. These remarks were welcomed by a large number of Chinese officials present at the World Trade Organization (WTO) headquarters.

Mr. Ha Lap Phong also met with WTO Director-General Ngozi Okonjo-Iweala, who expressed satisfaction with the positive results and called on the two countries to take advantage of this momentum to continue to ease trade tensions.

Although the WTO has previously ruled against the Trump administration's tariffs, the cases are currently stalled because the US has blocked the appointment of judges to the organization's appellate body.

US - China agree to establish new trade consultation mechanism

Chinese Vice Premier He Lifeng said the two sides have agreed to set up a new consultation mechanism to handle economic and trade issues, with specific details to be finalized as soon as possible.

Over the past few decades, the US and China have established several dialogue mechanisms to narrow bilateral economic differences, such as the Economic Working Group established by US Treasury Secretary Janet Yellen and Mr. He Lifeng in 2023 under President Joe Biden.

However, these mechanisms often stop at listening to each other's complaints, and have not made any clear progress in Washington's efforts to push China to shift from an export-led growth model to domestic consumption.

The recent meeting in Geneva also marked the first time senior US and Chinese economic officials met face to face since Donald Trump returned to the White House and began his global tariff campaign.

In February, Mr. Trump declared a national emergency related to the fentanyl crisis and imposed a 20% tariff on Chinese goods.

By April, the tariff was raised to 34%, and after several further increases, tariffs between the two countries exceeded 100%, causing nearly $600 billion worth of bilateral trade to virtually freeze.

China has always insisted that lowering tariffs is a precondition for any negotiations. But for the first time, Mr Trump has specified a potential reduction, saying that the 80% tariff on Chinese goods is “reasonable”.

US Trade Representative Jamieson Greer said that before the meetings took place over the weekend, both sides had prepared carefully and the results achieved would contribute to resolving the trade emergency that President Trump had declared.

“We believe that the agreement with China will help us move forward to resolve this urgent issue.”

The White House later issued a brief press release, echoing Greer and Treasury Secretary Bessent, with the notable headline: “US Announces Trade Agreement with China in Geneva.” However, no specific details were released.

More trade deals are being promoted by the US after negotiations with China

White House economic adviser Kevin Hassett said China is “very eager” to rebalance trade relations with the United States through dialogue.

Mr. Hassett shared on Fox News’ “Sunday Morning Futures” that there could be more trade deals announced this week, not just with China but with other countries as well.

Last week, the US reached a limited trade deal with the UK, but kept 10% tariffs on many goods from the country. Hassett said he had been briefed by US Commerce Secretary Howard Lutnick on about 24 deals being negotiated, with US Trade Representative Jamieson Greer also involved.

According to Hassett, these agreements “look similar to the UK agreement, but each is a customized version.”

Regarding the meeting with China, President Trump continued to give a positive assessment. On the social network Truth Social, he called it a “complete reset… in a friendly but constructive spirit.”

Washington is now aiming to reduce its $295 billion goods trade deficit with Beijing, and it also expects China to abandon its mercantilist economic model that Washington says distorts global markets.

To achieve this, however, China will have to undertake politically sensitive domestic reforms.

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Source: https://baonghean.vn/my-va-trung-quoc-ket-thuoc-dam-phan-thuong-mai-geneva-voi-tin-hieu-tich-cuc-se-cong-bo-chi-tiet-vao-hom-nay-10297077.html