US, China make’substantial progress’ on trade deficit pact
The United States and China have achieved significant advancements in negotiations aimed at reducing the trade deficit. U.S. Treasury Secretary Scott Bessent on Sunday indicated “substantial progress” in discussions with China’s leading economic officials aimed at mitigating the adverse effects of the ongoing trade war. However, he did not provide specifics regarding any agreements reached as the two days of negotiations concluded in Geneva. Bessent informed reporters that specifics would be disclosed on Monday and that U.S. President Donald Trump was completely apprised of the outcomes of the “productive talks.”
U.S. Trade Representative Jamieson Greer, who engaged in discussions with Bessent, Chinese Vice Premier He Lifeng, and two Chinese vice ministers, characterized the outcome as “a deal we struck with our Chinese partners” that aims to mitigate the $1.2 trillion U.S. global goods trade deficit. “As the Secretary noted, this was indeed a very constructive two days.” It is crucial to recognize the rapidity with which consensus was achieved, suggesting that the disparities may not have been as significant as previously assumed,” Greer remarked, noting that the Chinese representatives were “tough negotiators.” The meeting marked the inaugural in-person engagement among Bessent, Greer, and He following the imposition of tariffs exceeding 100% on each other’s goods by the world’s two largest economies.
While Bessent has indicated that the bilateral tariffs were excessively high and required reduction as part of a de-escalation strategy, he refrained from providing any specifics regarding the agreed-upon reductions and did not entertain inquiries from the press. The US Treasury Secretary defends the tariffs imposed on China, emphasizing the significance of India as a crucial trade partner.
Previously, White House economic adviser Kevin Hassett remarked that the Chinese were “very, very eager” to participate in discussions and recalibrate trade relations with the United States.
Hassett also informed Fox News that additional foreign trade agreements may be forthcoming with other nations as early as this week. In the latest developments, Trump provided an optimistic assessment of the negotiations, stating that the two parties had engaged in “a total reset… in a friendly, but constructive, manner.” “A highly productive meeting today with China, in Switzerland. Numerous topics were addressed, with a significant degree of consensus reached,” Trump stated on his Truth Social platform. “For the benefit of both China and the U.S., we advocate for an opening up of China to American business.” Significant advancements have been achieved,” Trump stated, without providing further details on the progress.
During an appearance on “Sunday Morning Futures” on Fox News with Maria Bartiromo, Hassett indicated that Beijing is keen to re-establish trade relations with the United States. “It appears that the Chinese are quite enthusiastic about engaging and restoring normalcy,” Hassett stated. Hassett indicated that additional trade deal announcements may be forthcoming in the wake of last week’s agreement with the United Kingdom. He stated that he had received a briefing from Commerce Secretary Howard Lutnick regarding two dozen pending deals currently in development with USTR Greer. “Each one resembles the UK deal to some extent, yet they are all tailored to specific needs,” Hassett stated.
The negotiating teams convened at the gated villa of Switzerland’s U.N. ambassador, with a view of Lake Geneva in the verdant suburb of Cologny. Black Mercedes vans equipped with sirens transported individuals to and from the venue, which enjoyed an abundance of bright sunshine. Switzerland, maintaining its neutral stance, was selected as the location after overtures made by Swiss politicians during their recent trips to China and the United States.
Washington aims to diminish its $295 billion goods trade deficit with Beijing while urging China to abandon what the United States characterizes as a mercantilist economic model. This effort includes encouraging China to enhance its contribution to global consumption, a transition that would necessitate politically delicate domestic reforms.
