US, China reach trade deal in Geneva to cut US trade deficit

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced on Sunday that they reached a deal with China aimed at reducing the US trade deficit, following two days of high-stakes negotiations in Geneva.

The officials described the talks as having made “substantial progress” but provided no specific details, stating that further information would be released on Monday.

Bessent told reporters that US President Donald Trump was fully informed of the “productive talks” with Chinese Vice Premier He Lifeng, Vice Commerce Minister Li Chenggang, and Vice Finance Minister Liao Min.

Greer called the Chinese negotiators “tough” and noted that the agreement was reached quickly, suggesting that differences between the two sides were “not so large as maybe thought.” He described the outcome as “a deal we struck with our Chinese partners” to address the USD 1.2 trillion US global goods trade deficit.

The talks, held at the residence of Switzerland’s ambassador to the UN, marked the first face-to-face meeting between senior US and Chinese economic officials since Trump took office and initiated a global tariff campaign.

This began with a 20 percent tariff on Chinese goods in February, citing a national emergency over the US fentanyl crisis, followed by a 34 percent “reciprocal” duty in April. Subsequent increases pushed US tariffs on Chinese goods to 145 percent and Chinese tariffs on US goods to 125 percent, halting nearly USD 600 billion in annual bilateral trade.

Bessent has previously called these high tariffs a “trade embargo” between the world’s two largest economies, stating they need to be “de-escalated.” However, neither he nor Greer mentioned plans to reduce the tariffs during their remarks. On Friday, Trump suggested an 80% tariff on Chinese goods “seems right,” indicating a potential target for reduction. China had insisted that tariff reductions be part of any negotiations.

Greer emphasized that preparatory work before the Geneva meetings on Saturday and Sunday laid the groundwork for the agreement, which he said would help address the national emergency declared by Trump over growing US trade deficits. “We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency,” Greer said. The officials took no questions from reporters.

A White House press release echoed Bessent and Greer’s comments, headlined “US announces China trade deal in Geneva,” but offered no additional details.

Chinese officials were expected to brief reporters in Geneva later on Sunday evening.