The United States and China have reached a preliminary trade agreement, according to top Trump administration officials who made the announcement on Sunday, signaling a potential de-escalation in the ongoing trade conflict between the two economic giants.
Although the full terms of the agreement, which was reached during high-level discussions held in Switzerland over the weekend, have not yet been disclosed, officials indicated that a more detailed statement would be issued on Monday.
“The U.S. has a massive $1.2 trillion trade deficit, so the President declared a national emergency,” US Trade Representative Jamieson Greer said Sunday. “We’re confident that the deal we struck with our Chinese partners will help us work toward resolving that national emergency.”
The trade dispute has been marked by stiff tariffs imposed by President Trump—some as high as 145%—on imported Chinese goods. In response, China implemented its own counter-tariffs targeting American exports.
Greer and Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in Geneva to address the growing economic standoff and attempt to chart a course forward.
“I can tell you that the talks were productive,” Bessent teased.
This breakthrough follows a recent announcement from the Trump administration about a proposed trade agreement with the United Kingdom, underscoring a broader strategy to renegotiate global economic ties.
President Trump has frequently criticized China for a host of issues including its role in fentanyl exports, currency manipulation, and violations of intellectual property rights. Forced technology transfers and unfair trade practices have also been central to the administration’s complaints.
Analysts estimate that intellectual property theft by China has cost the U.S. economy anywhere from $225 billion to as much as $600 billion each year.
In 2023, the U.S. recorded a $295.4 billion trade deficit with China—something President Trump has consistently condemned as unacceptable.
During his second term, Trump introduced a 20% tariff on Chinese imports to pressure Beijing into taking action on the fentanyl epidemic. Later, on what he called “Liberation Day,” he rolled out a set of “reciprocal” tariffs aimed at leveling the playing field, which China quickly answered with its own retaliatory measures.
Despite the tension, officials from Trump’s administration maintain that the recent discussions with Chinese counterparts yielded impressive results in a relatively short span of time.
“It’s important to understand how quickly we were able to come to [an] agreement, which reflects that perhaps the differences were not so large as maybe thought,” Greer added.
“There was a lot of groundwork that went into these two days.”
Trump himself proclaimed yesterday that “GREAT PROGRESS MADE” during negotiations with the Chinese delegation.
With a July 8 deadline looming—by which time Trump plans to finalize deals or enforce a stricter set of tariffs known as the “Liberation Day” rates—his administration is scrambling to wrap up agreements with multiple nations.
{Matzav.com}