The United States and China have reached a historic trade agreement after successful weekend negotiations in Geneva, Switzerland. The landmark deal aims to reduce China’s tariffs, eliminate retaliations, and set the stage for future discussions to enhance market access for American exports. President Donald J.
Trump’s approach ensures a fair baseline, encouraging domestic production, strengthening supply chains, and prioritizing American workers. The agreement underscores his firm stance on protecting American interests and stopping unfair trade practices. Under the new agreement, both countries will reduce tariffs by 115% while maintaining an additional 10% tariff.
These measures will go into effect by May 14, 2025. China will remove retaliatory tariffs imposed since April 4, 2025, and suspend or remove non-tariff countermeasures against the United States announced since April 2, 2025. The United States will remove additional tariffs imposed on China on April 8 and April 9, 2025, while retaining duties imposed on China prior to April 2, 2025.
Both nations have agreed to establish a mechanism for ongoing discussions about trade and economic issues. China will be represented in these discussions by He Lifeng, Vice Premier of the State Council, while the United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
Historic trade milestone in Geneva
The agreement also includes commitments to aggressive actions to stem the flow of fentanyl and related precursors from China to illicit drug producers in North America. This historic deal highlights a significant milestone in U.S.-China trade relations and a commitment to rebalancing trade practices to benefit both nations. The U.S. goods trade deficit with China stood at $295.4 billion in 2024, the largest with any trading partner.
This agreement seeks to address these imbalances and deliver lasting benefits to American workers, farmers, and businesses. The announcement follows a period of intense trade tensions, spearheaded by the Trump administration’s aggressive tactics. The 90-day truce has brought relief to global investors who have been distressed by the trade war, which has roiled financial markets, disrupted supply chains, and stoked recession fears.
Speaking at a Monday press conference in Geneva, Bessent said: “The consensus from both delegations is that neither side wants decoupling, and what has occurred with these very high tariffs was equivalent to an embargo, which neither side wants. We do want trade. We want more balance in trade.
And I think both sides are committed to achieving that.”
This substantial, if temporary, breakthrough was unexpected. Just last week, Bessent had managed expectations by suggesting that his goal for the talks was “de-escalation” of tension rather than “a big trade deal,” as the US and China had been at a stalemate since Trump imposed his tariff policy.
