U.S. Washington Releases Press Release Announcing Deal! Is the U.S.-China Tariff Trade War Resolved with Significant Consensus?

Comprehensive Foreign Reports

Comprehensive foreign media reports indicate that the U.S.-China trade business talks held in Geneva, Switzerland, have concluded successfully. A press release from the U.S. government, titled U.S. Announces China Trade Deal in Geneva, announced that significant progress was made in trade negotiations with China over the weekend.

Chinese Vice Premier He Lifeng, representing China at the talks, also stated during a press conference with China’s official media Xinhua that the discussions were candid, in-depth, and constructive, leading to important consensus. Both the U.S. and China did not disclose further details, but the trade discussions in Geneva suggest a glimmer of reconciliation amid numerous trade and economic divergences and disputes between the two nations.

U.S. Treasury Secretary Announces Substantial Progress in U.S.-China Trade

U.S. Treasury Secretary Scott Bessent stated in a press release: “I am pleased to report that substantial progress has been made in this very important trade negotiation between the U.S. and China. I can tell everyone that the discussions were productive.”

U.S. Trade Representative Ambassador Jamieson Greer also remarked: “As the Secretary pointed out, this was a very constructive two-day meeting. Importantly, understanding that we could reach an agreement so quickly reflects that the divergences may not be as significant as imagined. Remembering why we are here, the U.S. has a massive trade deficit of $1.2 trillion, prompting the President to declare a national emergency and impose tariffs. We believe that the agreement we reach with China will help us address this national emergency.”

U.S. and China Break Silence of Cold War and Start Dialogue Just for Appearances?

Since President Trump took office in January, he has unleashed a barrage of tariffs and trade sanctions against China, imposing tariffs as high as 145% on certain Chinese imports. China has retaliated with various countermeasures, including imposing tariffs of 125% on certain U.S. exports to China. With China holding U.S. bonds and rare earths as leverage, it remains calm while facing the U.S. Both sides chose to negotiate at this time, yet each describes the other as the one “showing weakness.” Is it possible that the public disputes are merely for the sake of maintaining appearances in the race for global supremacy?

Stephen Olson, a senior visiting scholar at the ISEAS-Yusof Ishak Institute in Singapore and a former U.S. trade negotiator, pointed out that neither side wants to give the impression of backing down.

As the U.S.-China Geneva trade talks approached, Trump’s tone significantly changed. He stated to reporters last Thursday that who called whom first is not important; what truly matters is what happens in the meeting room.

Who is More Severely Affected?

China has just concluded its Labor Day holiday, and Beijing believes it is the right time to initiate bilateral talks. The U.S. economy is facing its first contraction in three years. A representative from a toy company in Los Angeles told the BBC that they are facing the risk of a complete supply chain collapse.

According to official Chinese data, manufacturing activities in China have fallen to a new low. A survey released by Caixin indicates that service sector activities have reached the lowest level in the past seven months. Chinese exporters are being impacted by U.S. tariff sanctions, leading to a significant accumulation of goods in warehouses. Nevertheless, they maintain a strong pro-China stance and are actively seeking markets outside the U.S.

What Will Be the Outcome?

Former U.S. trade negotiator Stephen Olson believes that this meeting may open up discussions on several previously disconnected issues, such as fentanyl, potentially leading to an upgraded agreement.

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