At a news conference in Geneva on 12 May 2025, U.S. Treasury Secretary Scott Bessent dropped this bombshell. He hinted at major breakthroughs to come in the U.S.-China trade relationship. He called for a temporary trade truce. This deal is seen as a way to reduce friction as the two countries continue to develop their often contentious economic relationship. This agreement marks a 90-day pause on most tariffs imposed by both countries, signaling a potential shift towards more collaborative trade practices.
As part of his remarks, Bessent underscored the value of the mechanisms that were put in place to stop future tariff escalations. He stated, “What we have with the Chinese is a mechanism to avoid upward tariff pressure.” This strategic alignment reduces volatility on the trading floor, creating a more stable trading environment. It further aids in alleviating the financial burden that tariffs can place on both economies.
Bessent’s comments followed a meeting held over the weekend in Switzerland with U.S. Trade Representative Jamieson Greer and Chinese officials. The joint statement characterized the talks as an affirmation of both countries’ willingness to constructively engage and address their trade issues. While the specifics of the next round of negotiations are still to be determined, Bessent said she was hopeful after these initial meetings.
Bessent said, “I envision that we will see each other again in the coming weeks. We’ll get started on a much more detailed agreement after that.” This anticipation indicates a willingness from both sides to pursue deeper discussions that could lead to a more comprehensive trade deal.
The provisional trade agreement is an important step toward reducing tensions as both countries work toward more permanent solutions. The global economy is in a precarious state. The continued discussion amongst U.S. and Chinese counterparts will be instrumental in determining the future of the economic relationship between the two countries.