On May 12, the United States and China will announce a trade agreement. Reuters sources report that the breakthrough on de-escalating the trade war came during a meeting between American and Chinese delegations in Geneva.
From the US side, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer took part in the talks. The Chinese delegation included Vice Premier He Lifeng and Deputy Minister of Commerce Li Chenggang.
Following the meeting, both sides confirmed significant progress but declined to reveal the terms of the deal until an official statement is released.
What is known so far is that the US and China have agreed to create a platform for ongoing consultations on trade matters.
Greer believes that the agreement with China could help the US reduce its trade deficit by $1.2 trillion. He described the Chinese negotiators as tough but praised the talks as open, in-depth and constructive.
Neither side has confirmed any reductions or cancellations of tariffs yet. However, the positive signals from the negotiations have already triggered growth on US markets.
Earlier in April, US President Donald Trump announced the introduction of tariffs on imported goods.
As a result of the tit-for-tat trade standoff, US tariffs on Chinese imports reached 145%, while China imposed retaliatory tariffs of up to 120% on American goods. The US Treasury likened these rates to an embargo and hinted they may be reduced soon.
