After two intense days of negotiations in Geneva, Switzerland, U.S. Treasury Secretary Scott Bessent announced a significant breakthrough in trade relations between the United States and China. Although the specific terms of the agreement have yet to be released, all signs point toward a meaningful de-escalation of the ongoing trade war.

🤝 A First Concrete Step in the White House’s New Economic Strategy?

Bessent described the talks with Chinese Vice Premier He Lifeng as successful and confirmed that President Donald Trump was “kept fully informed” throughout the process. Full details are expected to be published on Monday, but Bessent already called it “a real step forward.”

Unlike Trump’s tough stance against pharmaceutical giants—evident in his newly proposed drug price reform—this agreement shows the U.S. is open to compromise when it benefits American households and businesses.

🧩 Rapid Progress Surprises Veteran Diplomats

The negotiations also included U.S. Trade Representative Jamieson Greer, who called the outcome “a foundation for reducing the $1.2 trillion trade deficit.” He added that both sides resolved key sticking points faster than anticipated.

Greer noted, “It’s important to realize how quickly we were able to reach an agreement—this suggests the differences might not have been as deep as previously thought.” He also described the Chinese team as “tough negotiators.”

🏛 Backing from the White House and Department of Commerce

This meeting in Geneva was the first in-person encounter between Bessent, Greer, and He since tariffs between Washington and Beijing surged past 100%. While no concrete changes to current tariffs have been announced yet, comments from U.S. officials suggest a shift may be underway.

White House advisor Kevin Hassett confirmed on Fox News that the Chinese side is “very, very eager” to restore a fair relationship and hinted that similar deals with other countries could follow this week.

📢 Trump: "A Great Reset in Relations"

President Trump shared his reaction overnight on Truth Social, calling the talks “a complete reset conducted in a friendly but constructive way.” He added:

“Many things were discussed, many things agreed upon. We want to see China open up to American trade—for the good of both China and the U.S. A LOT OF PROGRESS MADE!!!”

⚖️ 10% Baseline Tariff Still in Place – For Now

Commerce Secretary Howard Lutnick confirmed on Sunday that the 10% baseline tariff on imports from other nations will remain in effect “for the foreseeable future.” He insisted that the cost will fall on foreign producers, not American consumers. Still, recent trends suggest that companies are already passing some of the costs on to buyers.

Lutnick emphasized:

“This tariff doesn’t apply to domestic producers, so American companies will have the edge. Foreign competitors will need to adjust.”

🌍 What’s Next for U.S.-China Economic Relations?

Although much of the agreement remains confidential, the speed of its development and the positive tone from both sides suggest it could become a cornerstone for a new balance in trade.

In the context of Trump’s firm push on global drug pricing, it’s clear the U.S. is taking a dual-track approach: applying pressure where needed to cut costs for American families, and showing flexibility when it leads to strategic advantage.

#usa , #china , #Tariffs , #TradingCommunity , #TradeWars

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