US, China reach deal to cut trade deficit

GENEVA: US Treasury Secretary Scott Bessent on Sunday reported “substantial progress” in US talks with China’s top economic officials to de-escalate a damaging trade war, but offered no details of an agreement reached as two days of negotiations wrapped up in Geneva.

Bessent told reporters that details would be announced on Monday and that US President Donald Trump was fully aware of the results of the “productive talks.”

US Trade Representative Jamieson Greer, who participated in the talks with Bessent, Chinese Vice Premier He Lifeng and two Chinese vice ministers, described the conclusion as “a deal we struck with our Chinese partners” that will help reduce the $1.2 trillion US global goods trade deficit.

“And this was, as the Secretary pointed out, a very constructive two days. 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 maybe thought,” Greer said, adding that the Chinese officials were “tough negotiators”

The meeting was the first face-to-face interaction between Bessent, Greer and He since the world’s two largest economies imposed tariffs well above 100% on each other’s goods.

Although Bessent has said the bilateral tariffs were too high and needed to come down in a de-escalation move, he did not offer any details of reductions agreed and took no questions from reporters.

Earlier, White House economic adviser Kevin Hassett said the Chinese were “very, very eager” to engage in discussions and rebalance trade relations with the United States.

Hassett also told Fox News that more foreign trade deals could be coming with other countries as soon as this week.

Overnight, Trump gave a positive reading of the talks, saying the two sides had negotiated “a total reset… in a friendly, but constructive, manner.”

“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to,” Trump posted on his Truth Social platform.

“We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!,” Trump added, without elaborating on the progress.

Speaking on “Sunday Morning Futures” on Fox News with Maria Bartiromo, Hassett said Beijing is eager to re-set trade relations with the United States.

“It looks like the Chinese are very, very eager to play ball and to re-normalize things,” Hassett said.