#USChinaTradeTalks

The U.S.-China trade talks in 2025 have centered on de-escalating a trade war sparked by high tariffs. In May 2025, negotiations in Geneva led to a temporary agreement where both nations significantly reduced tariffs for 90 days—U.S. tariffs on Chinese goods dropped from 145% to 10%, and China cut its retaliatory tariffs from 125% to 10%. Both sides also agreed to remove certain non-tariff measures and established a trade consultation mechanism led by U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng. The talks aimed to address the U.S.'s $1.2 trillion trade deficit and concerns over China's trade practices, while China pushed for market access and multilateralism.

Economic impacts are significant. U.S. imports from China are projected to drop 75-80% in 2025, and China’s exports to the U.S. fell 21% in April. The U.S. economy saw its first quarterly contraction since 2022, while China’s manufacturing sector contracted sharply. Despite the tariff reductions, businesses on both sides remain cautious, with Chinese exporters diversifying markets and U.S. firms shifting production.

Sentiment on X reflects skepticism, with some calling the talks a "clown show" due to the lack of sustained progress. Analysts suggest China may make concessions, like increasing U.S. goods purchases or addressing fentanyl-related issues, to extend the tariff truce, but both sides are reluctant to compromise on core interests.