CNN
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The United States and China are set to give more detail on Monday about progress made during a weekend of marathon trade negotiations in Geneva, Switzerland by officials from the world’s two largest economies.
Washington played up progress toward a “deal” on Sunday after the talks concluded, while Beijing touted mutual agreement to begin a formal economic and trade negotiation process. The Chinese delegation told a press conference the two sides planned to finalize the details of the “consultation mechanism” as soon as possible and would release a joint statement Monday.
Global investors are cheering a thaw in the trade war sparked by US President Donald Trump’s massive tariffs, which have roiled global markets, disrupted supply chains and stoked recession fears. Dow futures jumped about 1%, while S&P 500 futures rose 1.3%, and the tech-heavy Nasdaq Composite futures went up 1.7% on Sunday night. Asian markets were higher during Monday trading.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer did not share specifics about the negotiations in a brief statement to reporters on Sunday.
“I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” Bessent said at the residence of the Swiss representative to the United Nations in Geneva, which served as the venue for the talks.
Standing beside Bessent, Greer indicated that the two sides had reached some kind of agreement but did not give details. He pointed to a “$1.2 trillion trade deficit,” which he called a “national emergency” that required tariffs to be imposed.
“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought,” the trade representative said. “So we’re confident that the deal we struck with our Chinese partners will help us to resolve, work toward resolving that national emergency.”
The two are expected to offer more details at a Monday morning press conference in Geneva.
Speaking at the Sunday press conference, Chinese Vice Premier He Lifeng, who led his delegation, did not mention any deal, though he sounded upbeat and positive, which is a tone change from previous official statements about the trade conflict with the US.
The talks were “candid, in-depth and constructive, reached important consensus and made substantial progress,” he was quoted as saying by state broadcaster CCTV.
He called on the two sides to “follow a practical attitude for solving problems” and speak candidly while managing differences in order to expand the “cake of cooperation” to inject more certainty and stability into the world economy.
A trade deal with China would be a welcome sign for the global economy and provide clarity for consumers and American companies, which have braced for a possible recession due to rising prices.
After the first day of talks concluded on Saturday, President Donald Trump posted on Truth Social that there was “a total reset negotiated in a friendly, but constructive, manner.”
It’s been a tit-for-tat escalation between the United States and China after Trump tacked 34% reciprocal tariffs on Chinese goods and upped that rate to 145% tariffs days later. China retaliated with 125% on US goods.
It’s unclear whether the two-day talks in Geneva have yielded any firm agreement on reducing tariffs on both sides. On Sunday, the White House released a statement touting a “trade deal” after the talks ended, but it had no detail beyond the statements made by Bessent and Greer.
The Chinese side did provide more information about the trade negotiation process. Trade Representative Li Chenggang said at the Sunday press conference that Vice Premier He would represent Beijing as the lead person for China-US trade and economic affairs and that he would “co-lead the mechanism together with the US lead persons.”
“The working teams from both sides are going to have regular and irregular communications relating to trade and economic issues. The timing, as well as the venue or location for future communications, will be determined by both sides,” he added.
When pressed by a reporter for more detail about the upcoming Monday joint statement, Li, like He, made a food reference to explain the Chinese position.
“As regards the timing for the release of the joint statement, as we say back in China, if the dishes are delicious, then timing is not a matter. So I think no matter when this statement is released, it’s going to be … big news, good news for the world,” he said.
The trade war has already affected the US and Chinese economies. On Friday, US port officials told CNN that not a single cargo vessel had left China with goods for the two major West Coast ports over the past 12 hours. That hasn’t happened since the Covid-19 pandemic.
If there is a change to the US tariff rate on China, it’s unlikely to drop below the 10% baseline rate that’s in place for other countries. Even the United Kingdom’s recent trade deal with the United States did not change much from the April 2 “Liberation Day” announcement.
The deal Trump announced with the UK maintained a 10% tariff rate but had some carve-outs for British cars, planes, steel, aluminum and beef. Economists have said 50% is the make-or-break threshold for the return of somewhat normal business between the US and China.
