In a significant step toward resolving trade disputes, China and the United States held high-level economic and trade talks in Geneva, Switzerland, from May 10 to 11, 2025. The discussions were led by China's Vice Premier He Lifeng and U.S. Treasury Secretary Besent and Trade Representative Greer. The talks resulted in a joint statement issued on May 12, marking substantial progress in reducing bilateral tariffs and fostering a healthier trade relationship between the two nations.

Since April 2025, the U.S. government has escalated trade tensions by imposing additional "reciprocal tariffs" on Chinese goods, increasing the rates from 34% to 84% and later to a staggering 125%. In response, China implemented firm countermeasures, including tariffs and non-tariff actions. These high tariffs severely disrupted normal trade relations and the global economic order, prompting both sides to seek solutions through dialogue.

The joint statement outlined several positive measures:

Tariff Reductions

The U.S. committed to eliminating 91% of tariffs imposed under recent executive orders and suspending 24% of the remaining tariffs for 90 days, retaining only 10%.

China reciprocated by canceling 91% of its counter-tariffs, suspending 24% for 90 days, and retaining 10%.

Both sides agreed to suspend or cancel non-tariff measures that were part of their respective countermeasures.

This effectively means that the U.S. will temporarily reduce its total tariffs on Chinese goods from 145 percent to 30 percent, while China will reduce its tariffs on U.S. imports from 125 percent to 10 percent.

Establishment of a Consultation Mechanism

A new China-U.S. trade consultation mechanism will be created to maintain close communication and address trade concerns.

Regular or ad hoc consultations will be held alternately in China, the U.S., or a mutually agreed third country.

China expressed hope that the U.S. will continue to move forward in correcting unilateral tariff policies and strengthening mutually beneficial cooperation. Both sides emphasized the importance of sustainable and long-term trade relations, which are crucial not only for their own economies but also for the stability of the global economy.

U.S. Treasury Secretary Bessent said, “We don't want to decouple; what we want is fair trade.”