The U.S. capital has issued a press release announcing a Deal! Has the U.S.-China tariff trade war reached an important consensus and cooled down?

According to comprehensive reports from foreign media, the U.S.-China trade business talks held in Geneva, Switzerland have successfully concluded. The U.S. Announces China Trade Deal in Geneva press release from Washington announced that significant progress was made in the trade negotiations with China over the weekend.

He Lifeng, the Vice Premier of the State Council of China representing China at the talks, also stated at a press conference held by China's official media Xinhua that the discussions were candid, in-depth, and constructive, reaching important consensus. Both the U.S. and China did not disclose more related details, but the trade business talks in Geneva, Switzerland, indicate a glimmer of reconciliation in the many trade and economic differences and disputes between the United States and China.

The U.S. Secretary of the Treasury announced in a news release that substantial progress has been made in U.S.-China trade.

U.S. Treasury Secretary Scott Bessent said in a press release: I am pleased to report that the United States and China have made substantive progress in this very important trade negotiation, and I can tell everyone that the negotiations have been productive.

U.S. Trade Representative Ambassador Jamieson Greer also stated: As the Secretary of State pointed out, this was a very constructive two-day meeting, and it is important to understand that our ability to reach an agreement so quickly reflects that the differences may not be as large as imagined, as long as we remember why we are here. The U.S. has a massive trade deficit of $1.2 trillion, so the President declared a national emergency and imposed tariffs. We believe that the agreement we reached in cooperation with China will help us work towards resolving the national emergency.

Is the dialogue between the United States and China, breaking the silence of the Cold War, just for show?

Since Trump took office in January this year, the U.S. has launched a barrage of tariff trade sanctions against China, imposing taxes as high as 145% on certain imported goods from China. China, not to be outdone, has implemented several counter-sanction measures, with some goods exported from the U.S. to China facing tariffs of 125%. Additionally, China holds significant leverage with U.S. bonds and rare earth materials, confidently preparing for battle. Both sides have chosen this moment to negotiate, yet they each depict the other as the one "showing weakness." Is the conflict on the table merely a face-saving dispute for the title of world number one?

Stephen Olson, a senior visiting scholar at the ISEAS-Yusof Ishak Institute in Singapore and a former U.S. trade negotiator, pointed out that both sides do not want to give the outside world the impression of backing down.

As the US-China-Japan trade talks approached, Trump's tone significantly changed. Last Thursday, he told reporters that it didn't matter who called whom first; what really mattered was what happened in the meeting room.

Who is more hurt?

China has just concluded the May Day holiday, and Beijing believes it is the right time to initiate bilateral talks. The U.S. economy is facing its first contraction in three years, and a toy company executive in Los Angeles told the BBC that they are facing the risk of a complete supply chain collapse.

According to official Chinese data, manufacturing activity in China has fallen to a new low. A survey released by Caixin shows that service sector activity has hit its lowest level in the past seven months. Chinese exporters have been impacted by U.S. tariff sanctions, with a large amount of goods piling up in warehouses; nevertheless, they still maintain a strong stance on supporting China and are actively seeking markets outside of the United States.

What will the result be?

Former U.S. trade negotiator Stephen Olson believes that this meeting may open up discussions on several previously unconnected issues, such as fentanyl, which could lead to an upgraded agreement.

This article announces that the US Washington has released a press release declaring a Deal! Has the US-China tariff trade war reached an important consensus and cooled down? Originally appeared in Chain News ABMedia.