China and the United States have concluded a high-level two-day meeting in Geneva with what officials from both sides describe as “substantive progress” in easing trade tensions and forging a path for long-term economic cooperation.
Chinese Vice Premier He Lifeng, who led the Chinese delegation, said the discussions with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer were “frank, in-depth, and constructive.” The talks resulted in an agreement to establish a joint economic and trade consultation framework, with both countries pledging further dialogue to address key concerns.
A joint statement released Monday outlined a series of tariff adjustments and a mutual commitment to de-escalate trade hostilities. Both countries agreed to suspend portions of recently imposed tariffs and to roll back certain duties introduced in early April.
Tariff Suspension and Adjustments
As part of the agreement, the United States will suspend 24 percentage points of the additional duties placed on Chinese goods, including imports from Hong Kong and Macao, for 90 days starting April 2. The remaining 10% tariff will remain in effect.
Furthermore, the U.S. will withdraw increased tariffs announced in executive orders issued on April 8 and 9, which had raised duties to as high as 125%.
In a reciprocal move, China will suspend 24 percentage points of its additional tariffs on U.S. goods for the same 90-day period, keeping a base 10% rate in place. It will also withdraw retaliatory tariff hikes introduced on April 9 and 11 and remove non-tariff restrictions imposed since April 2.
The two sides have committed to finalizing these actions by May 14, 2025.
Ongoing Engagement
Both countries agreed to launch a formal mechanism for ongoing economic dialogue, alternating meeting locations between China, the U.S., or a third country by mutual agreement. Vice Premier He Lifeng will represent China, while Secretary Bessent and Trade Representative Greer will represent the United States in these talks.
Vice Premier He emphasized the global significance of the U.S.-China economic relationship, calling the Geneva meeting a vital step toward rebuilding trust and stability in international trade.
“This meeting demonstrated that even amidst complex challenges, dialogue based on mutual respect can pave the way for cooperation,” He said at a press briefing.
He added that the talks align with the consensus reached during the January 17 phone call between the Chinese and U.S. presidents and expressed optimism about future collaboration.
Global Implications
The thaw in trade tensions between the world’s two largest economies is expected to have a stabilizing effect on global markets. Both parties acknowledged that a healthy U.S.-China trade relationship is essential not only to their own economies but also to worldwide growth and development.
In a joint commitment, both countries pledged to work toward a “sustainable, long-term, and mutually beneficial” economic relationship, emphasizing transparency, cooperation, and a willingness to resolve disputes through negotiation.
