The United States and China announced “substantial progress” after two days of high-level trade talks in Geneva, signaling a potential de-escalation of their prolonged tariff dispute.
Talks were held at the residence of the Swiss ambassador to the United Nations and were led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Both parties agreed to establish a formal mechanism for continued negotiations. A joint statement is expected soon, with the US set to release further details on Monday.
“This marks an important first step,” He Lifeng stated. “We’ve agreed to keep communication open and constructive.”
Though no immediate policy changes were revealed, negotiators from both sides struck a positive tone. Chinese Vice Commerce Minister Li Chenggang, using a cultural analogy, told reporters: “As we say back in China, if the dishes are delicious, the timing doesn’t matter. The results will be good news for the world.”
US Trade Representative Jamieson Greer emphasized the swift progress, suggesting that the perceived differences may have been overstated. “The speed at which we reached consensus shows our differences may not be as deep as assumed,” he said. “But credit also goes to the groundwork laid before these talks.”
Financial markets reacted swiftly. The US dollar gained against major currencies, while the Australian dollar and offshore yuan also edged higher—reflecting renewed optimism over China-related trade prospects.
Win Thin, global head of markets strategy at Brown Brothers Harriman & Co., cautioned that while tangible outcomes may take time, the clear intent to ease tensions was promising. “We remain skeptical about concrete deals from just two days of talks, but the signals are encouraging,” he wrote in a note.
The Geneva meeting came amid growing economic pressure. US President Donald Trump had raised tariffs on Chinese imports to 145%, citing China’s role in the fentanyl trade, its large trade surplus, and Beijing’s retaliatory tariffs. In response, China imposed 125% tariffs on US goods.
This tit-for-tat escalation strained global supply chains, with US retailers warning the administration of potential pandemic-level shortages if tariffs remained in place. These concerns added urgency to finding a resolution.
Chinese exports to the US fell by 20% in April, according to data from China’s General Administration of Customs, underlining the economic toll of the trade war.
As both nations now acknowledge the need to reduce tensions and avoid further economic damage, the Geneva meeting appears to be a tentative but important turning point.
