US Secretary of the Treasury Scott Bessent’s press conference in Geneva, December 5, 2025. This came after two days of frantic negotiations between US and Chinese officials. These ambitious negotiations resulted in the largest tariff reduction in history. Additionally, US tariffs on Chinese imports had been cut down to 30% and Chinese tariffs on US imports to 10%. This agreement represents a key milestone in the deepening trade war. In the process, for years, both countries have become trapped in an increasingly volatile game of tit for tat.
The political climate going in to these negotiations was heated. Beijing’s Ministry of Foreign Affairs consistently asserted, “We will not back down,” emphasizing China’s firm stance throughout the talks. Even a somewhat state-run comedic social media account in China took playful jabs that reaffirmed this messaging. It resulted in this iconic image of US Treasury Sec. Bessent literally chasing down an empty shopping trolley as Chinese officials flew on to Switzerland for further talks.
Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong, echoed a note of cautious optimism over the results. He noted, “I thought tariffs would be cut to somewhere around 50%,” suggesting that while the reductions are substantial, they still leave room for further negotiation and adjustment.
In her opening remarks, Secretary Bessent underscored the importance of what the group would be discussing over the weekend. As he put it, “Neither side wants a decoupling. This indicates that they both remain committed to maintaining bilateral economic ties despite rising tensions in their relationship. He went on to explain that high tariffs had actually worked as an embargo, like the two countries want to do now with each other.
Zhang Yun, senior fellow at the School of International Relations, Nanjing University. He called the deal a “victory for conscience and sanity.” He noted that the talks not only addressed immediate concerns but established a framework for ongoing dialogue, stating, “The talks established the necessary framework for continued dialogue and negotiations in the future.”
The backdrop of these negotiations is critical. China’s consumer price index posted its first 0.1 percent year-on-year decline in April, its third straight month of declines. This would be the worst economic trend imaginable and should heighten concern over the strains on China’s economy and its capacity to endure a long-lasting trade war. In fact, China has passed the US to become the largest trade partner for more than 100 countries. Its trade relationship with the US is deeply unequal. China sells so much more to the US than it purchases.
Although both parties issued statements promising to bridge differences and strengthen cooperation, the journey continues to be fraught with challenges. The Chinese Commerce Ministry emphasized the need to “lay the foundation to bridge differences” while encouraging the US to “thoroughly correct the wrong practice of unilateral tariff increases.”
Several companies, particularly in the technology sector like Apple, are acutely aware of how these tariff changes affect their operations. Many American companies rely on Chinese supply chains— production pipelines, as they call them. They have the greatest stake in the success of these negotiations.
The two delegations concluded their discussions with a commitment to continue dialogues under what has been termed an “economic and trade consultation mechanism,” as referred to by Beijing. These ongoing conversations are vital for both nations as they navigate their economic futures amid global uncertainties.