U.S. Announces China Trade Deal in Geneva
May 12, 2025
Summary
- Substantial Progress in Trade Talks: Secretary of the Treasury Scott Bessent reported significant advancements in trade discussions between the United States and China, emphasizing the productivity of the recent meetings held in Switzerland.
- Constructive Engagement: Ambassador Jamieson Greer noted that the discussions were productive and that the differences between the two nations may not be as significant as previously thought, indicating a potential for resolution.
- Addressing Trade Deficit: The U.S. faces a substantial $1.2 trillion trade deficit, which prompted the President to declare a national emergency and impose tariffs. The recent agreements are aimed at addressing this critical economic issue.
- Comprehensive Briefing Ahead: Both officials assured that further details and a complete briefing would be provided, keeping President Trump informed of the developments.
Joint Statement on U.S.-China Economic and Trade Meeting in Geneva
Summary
- Bilateral Commitment: The United States and China acknowledge the significance of their economic and trade relationship, which is vital for both nations and the global economy.
- Sustainable Relationship: Both governments emphasize the importance of fostering a sustainable, long-term, and mutually beneficial economic and trade partnership.
- Ongoing Discussions: Recent discussions indicate a belief that continued dialogue can effectively address mutual concerns regarding economic and trade issues.
- Spirit of Cooperation: The two countries are moving forward with a commitment to mutual opening, ongoing communication, and cooperation, all grounded in mutual respect.
- Trade Progress: Efforts are being made to enhance trade relations, which could lead to significant advancements in various sectors.
- Economic Impact: The bilateral relationship is expected to have a positive impact on economic growth and stability in both countries.
- Tariff Changes: Potential adjustments to tariffs may arise as part of the ongoing negotiations, aiming to facilitate smoother trade flows.
Effective May 14, 2025:
The Parties commit to take the following actions by May 14, 2025:
The United States will:
- The United States is set to modify tariffs on articles from China, including those from the Hong Kong and Macau Special Administrative Regions.
- This modification includes:
- Suspension of 24 percentage points of the additional ad valorem duty for an initial period of 90 days.
- Retention of a 10 percent ad valorem rate on these articles as per Executive Order 14257 dated April 2, 2025.
- Additionally, the U.S. will remove modified additional ad valorem rates imposed by:
- Executive Order 14259, dated April 8, 2025.
- Executive Order 14266, dated April 9, 2025.
- This decision marks a significant step in trade relations, suggesting a potential easing of tensions and fostering better economic cooperation between the U.S. and China.
- Economic Impact: The suspension of tariffs may lead to reduced costs for consumers and businesses, stimulating economic activity.
- Trade Progress: This action reflects ongoing negotiations and efforts to improve trade dynamics, indicating a possible shift towards more favorable conditions for international trade.
China will:
- China’s Tariff Modifications:
- China will suspend an additional 24 percentage points on the ad valorem rate of duty on certain U.S. articles for an initial 90 days.
- The remaining 10 percent ad valorem rate will still apply to those articles.
- Removal of Previous Tariff Announcements:
- The modified additional ad valorem rates imposed by Announcement No. 5 and Announcement No. 6 of 2025 will be removed.
- Non-Tariff Measures:
- All necessary administrative measures will be adopted to suspend or remove non-tariff countermeasures against the United States that have been in place since April 2, 2025.
- Implications for Trade:
- These changes signal a potential thawing in trade relations between China and the United States, suggesting a move towards improved economic cooperation.
- Economic Impact:
- The adjustments aim to alleviate trade tensions and could have positive repercussions for both economies, fostering a more stable trading environment.
Next Steps:
- The Parties will create a mechanism for ongoing discussions about economic and trade relations.
- Chinese Representative: He Lifeng, Vice Premier of the State Council.
- U.S. Representatives:
- Scott Bessent, Secretary of the Treasury.
- Jamieson Greer, United States Trade Representative.
- Discussions may occur alternately in China, the United States, or a third country as agreed upon by both Parties.
- Working-level consultations may be conducted on relevant economic and trade issues as needed.
- The focus will be on trade progress, economic impact, and tariff changes.
Reference Materials:
To view the documents associated with the above information, please click on the following links listed below:
U.S. Announces China Trade Deal in Geneva
Joint Statement on U.S.-China Economic and Trade Meeting in Geneva
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