Geneva, May 12, 2025 — The United States and China have reached a preliminary trade agreement following two days of high-level negotiations in Geneva, signaling a potential de-escalation in their ongoing trade conflict.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced that both nations have agreed to a 90-day pause in the escalating trade war, significantly reducing tariffs by 115% on each other’s goods.
The discussions addressed longstanding issues, including intellectual property rights, market access, and trade imbalances. While specific details of the agreement are yet to be disclosed, both sides have agreed to establish an economic and trade consultation mechanism to facilitate ongoing dialogue.
Financial markets responded positively to the news, with Asian stock indices climbing, oil prices rising more than 1%, and iron ore contracts increasing, reflecting improved global trade sentiment.
President Donald Trump described the negotiations as a move toward a “total reset” of U.S.-China relations and emphasized the need for China to open up to American businesses.
Chinese Vice Premier He Lifeng described the discussions as “in-depth and fruitful,” emphasizing the value of settling disputes amicably.
Although the agreement is a big step in the right direction, experts warn that specific pledges are still missing, and the deal’s success will rely on how it is carried out in the upcoming months.
