US-China Announces Reaching Constructive Deal Over Geneva Negotiation

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The recent U.S.–China trade negotiations held in Geneva on May 10–11, 2025, concluded on a cautiously optimistic note, with both sides describing the discussions as “constructive” and reporting substantial progress, though withholding specific details of any agreements reached. The announcement was made via an official statement from the White House.

This meeting marked the first direct, high-level engagement between senior U.S. and Chinese economic officials since President Trump escalated a global tariff campaign, which began in early 2025 amid a declared national emergency over the U.S. fentanyl crisis. A 20% tariff on Chinese imports was imposed in February, followed by a 34% "reciprocal" duty in April. Later increases pushed effective tariff rates into triple digits, halting nearly $600 billion in bilateral trade.

Despite lacking a breakthrough deal, the Geneva talks laid important groundwork. Both sides agreed to create a new "trade consultation mechanism"—a formal platform for continued negotiations, tariff discussions, and conflict management through structured dialogue. While no immediate tariff cuts were announced, a joint statement with further details is expected on Monday, May 12.

Chinese Vice Premier He Lifeng called the talks “candid and constructive,” stating that they had “achieved substantial progress and reached important consensus.” He expressed openness in a press conference to deepening trade cooperation but emphasized that significant tariff reductions by the U.S. remain a precondition for any broad liberalization.

President Trump, speaking on Friday, floated the idea of reducing tariffs to around 80%, the first time he has suggested a specific target. While the comment fell short of a firm policy shift, it signaled potential flexibility in Washington's position.

According to Alex Holmes, Asia-Pacific Regional Director at the Economist Intelligence Unit (EIU), who commented on LinkedIn, "We expect the first step of bringing down tariffs to around 60% to happen by midyear. However, the second step—finalizing a broader agreement and further reductions—will likely be drawn out and contentious."

The negotiators did not pose for photos despite announcements of the “constructive” results. AP noted that the White House says it has a deal with China, while the Chinese call it “consensus”.

In separate briefings with reporters, neither side mentioned any agreement to cut U.S. tariffs of 145% on Chinese goods and China's 125% tariffs on U.S. goods, according to Reuters.

As both nations step back from the brink of economic decoupling, the Geneva talks suggest a new phase of managed tension rather than full resolution, where diplomacy resumes, but mistrust lingers.