The United States and China have reached a preliminary trade agreement following two days of negotiations in Geneva. While the full details are set to be announced on Monday, May 12, 2025, both sides have indicated significant progress in easing the trade tensions that have impacted global markets.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer reported "substantial progress" in the talks with Chinese Vice Premier He Lifeng. The discussions aimed to address the escalating tariff war, which saw the U.S. imposing tariffs up to 145% on Chinese goods and China retaliating with 125% tariffs on U.S. exports .
President Trump described the outcome as a "total reset" in U.S.-China trade relations, signaling a potential easing of tensions . The agreement is expected to contribute to reducing the $295 billion U.S. trade deficit with China .
Investors are closely monitoring the situation, anticipating potential impacts on global trade dynamics and market performance.