Washington DC [US]: Following crucial trade negotiations in Geneva, the United States and China have agreed to suspend reciprocal tariffs for an initial 90-day period, a move US President Donald Trump has hailed as a “total reset” in bilateral relations.
Speaking at a press briefing at the White House, President Trump described the discussions as “very friendly” and stated that the US-China relationship is now “very, very good.” He also hinted at a potential phone call with Chinese President Xi Jinping later this week.
“The talks in Geneva were very friendly, the relationship is very good, we are not looking to hurt China. China has been hurt very badly. They were closing factories, they were having a lot of unrest. And they were very happy to be able to do something with us and the relationship is very, very good. Maybe I will speak with President Xi Jinping by the end of the week,” Trump said.
As part of the temporary understanding, China will levy a 10% tariff on US goods, while the US will apply a 30% tariff on Chinese imports — a significant reduction from previously threatened tariff levels that reached up to 245% on Chinese goods and 125% on US goods.
A joint statement issued after the talks noted the mutual recognition of the critical importance of a balanced and sustainable trade relationship, not only for the two countries but for the global economy.
The joint statement read:
“Both countries recognised the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship… Continued discussions have the potential to address each side’s concerns.”
To facilitate these ongoing discussions, both sides agreed to set up a dedicated mechanism, with He Lifeng, Vice Premier of the Chinese State Council, representing China, and Scott Bessent (US Secretary of the Treasury) along with Jamieson Greer (US Trade Representative) representing the US.
Meetings may alternate between China, the US, or a mutually agreed third country. The joint framework also allows for working-level consultations on trade issues as necessary.
President Trump has consistently stressed tariff reciprocity throughout his presidency and especially since beginning his second term. Starting April 9, the administration applied a 10% baseline tariff on all countries engaged in trade with the US, unless a special agreement was reached.
While Trump’s tariffs were initially applied across several countries with trade deficits against the US, China has remained the primary focus, with earlier threats of tariffs as high as 245% on Chinese goods.
Trump concluded his remarks by reiterating the US commitment to fair trade practices and a reciprocal tariff policy, extending beyond China to other nations including India.