#USChinaTradeTalks Commercial Negotiations between the U.S. and China.

The recent commercial negotiations between the United States and China, initiated in May 2025 in Geneva, have marked a milestone in the de-escalation of economic tensions between the two largest economies in the world. Following the imposition of tariffs of 145% by the U.S. and 125% by China, both nations agreed to a 90-day truce, reducing tariffs to 30% and 10%, respectively, and establishing a bilateral consultation mechanism.

This progress, led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, aims to address the U.S. trade deficit of $1.2 trillion, declared a national emergency by President Trump. Although the agreement has generated optimism in global markets, with increases in stock markets and temporary stabilization, structural challenges persist, such as Chinese industrial policies and technological security.

The fragility of the agreement was evidenced by mutual accusations of non-compliance, particularly in the microchip sector. The coming weeks will be crucial in determining whether the negotiations evolve into a stronger pact or if tensions resurface, impacting the global economy.