The United States and China have reached a new trade agreement following two days of intense negotiations in Geneva, according to a White House statement released on Sunday. US Treasury Secretary Scott Bessent described the discussions as “productive” and said full details of the deal would be announced on Monday.
“We made substantial progress between the United States and China in these important trade talks,” Bessent said.
US Trade Representative Jamieson Greer emphasized the speed at which both sides reached consensus, hinting that the gap between their positions may have been narrower than expected.
“There was a lot of groundwork done beforehand,” Greer noted. “But let’s not forget the urgency — the US faces a $1.2 trillion trade deficit. That’s why the President imposed tariffs and declared a national emergency. This deal is a key step toward resolving that.”
The breakthrough comes amid ongoing trade tensions that had created new opportunities for Indian exporters, with US importers turning to India after Washington imposed steep 145% tariffs on Chinese goods. However, the new US-China agreement could see China regain some of its lost market share, potentially undermining India’s recent gains.
Indian exporters have reported that Chinese firms, eager to retain their US clients, have even approached them for assistance in fulfilling orders. If the new deal includes tariff reductions, India’s advantage could erode significantly.
Despite a 20% drop in China’s exports to the US in April, China’s overall exports climbed 8.1% year-on-year, buoyed by strong trade with ASEAN and other regions, according to China’s Ministry of Commerce.
Earlier, White House economic adviser Kevin Hassett said China was “very, very eager” to strike a deal and rebalance trade relations. He also hinted that the US could announce additional trade agreements with other nations soon.
Former President Trump, commenting on the outcome, called the negotiations “a total reset” carried out in a “friendly, but constructive” manner.
“Great progress made!” he wrote on Truth Social. “We want China to open up to American business — for the good of both countries.”
