US Treasury Secretary Scott Bessent assured that there had been significant progress made in the still ongoing US – China trade talks at a recent briefing. These detailed negotiations, the first such high-level discussions since 2018, were held round-the-clock through the weekend in Geneva, Switzerland. Bessent underscored the fact that both countries have jointly committed to suspending all planned tariff escalations for the next 90 days. Most importantly, that strategic move was meant to leave a more favorable environment for ongoing negotiations.
During the briefing, Bessent was explicit about how consequential this discussion could be. He announced that they stand for a serious commitment to fix the long-standing trade issues between the two economic powerhouses. By announcing a 90-day pause, they are showing that both sides truly want to mend bilateral ties and seek ways to work together.
One of the most important things to come out of these conversations, Bessent shared, was the agreement to significantly lower tariff levels. He pointed out that these reciprocal tariffs between the U.S. and China would end up reducing by a remarkable 115%. This welcome change is designed to ease the financial burden that has fallen heavily on the nation’s businesses. Second, it seeks to protect consumers in each country.
The Geneva meetings were marked by vigorous and creative discussion. Representatives from both sides, from the United States and China, toiled enthusiastically to resolve the remaining disputes that have soured their economic relationship. Bessent conveyed optimism regarding the progress made, emphasizing that this initial round of discussions laid the groundwork for future negotiations.
The deal on the 90-day pause is not a panacea, but it is a big move in the right direction amid ongoing work to de-escalate trade tensions. Both countries have the opportunity to step back and thoughtfully assess their trade priorities. They can continue their technical discussions to try to arrive at a complete settlement. Bessent was clear that this pause is much more than a short-term provision. This is a very strategic political decision intentionally made to sow seeds of long-term stability in US-China trade relations.
Aside from the tariff cuts, it was clear from both sides that they were committed to having lines of communication. Bessent highlighted the importance of keeping lines of communication open and building relationships. He underscored the importance of critical, but constructive feedback from both sides as they work towards a final resolution.
As a result, the negotiations in Geneva were closely watched by international markets, showing just how important US-China trade relations have become. Analysts cautioned that the shift on tariffs was an exception with potentially long-term effects for trade patterns around the world, and an engine of global economic expansion.
Bessent ended his remarks by stressing again the importance of collaboration to tackle the challenges we all face together. He urged partisans on both sides of the Kaiser-Reich divide to stay active in conversation and to continue compromising in order to deliver impactful outcomes. With nearly every nation on earth watching extremely closely, the outcome of these ongoing trade talks could very likely set a precedent for future international negotiations.