The United States and China appear to be edging closer to easing trade tensions following two days of high-level talks in Geneva, with both sides agreeing to establish a new “trade consultation mechanism” aimed at resolving differences through direct dialogue.
The discussions, led by China’s Vice Premier He Lifeng and U.S. Trade Representative Jamieson Greer, were described as “constructive” by both delegations — a marked shift from the escalatory rhetoric that has dominated recent months.
According to China’s state-run Xinhua news agency, Vice Premier He Lifeng said the two countries had “taken [an] important step to resolve differences through equal dialogue and consultation,” and that they plan to issue a joint statement outlining their commitments. He added that “further consultations on issues of mutual concern” will be conducted going forward, signaling continued engagement beyond the Geneva meetings.
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State broadcaster CCTV echoed the sentiment, characterizing the discussions as “candid, in-depth and constructive,” and reporting that “substantial progress” had been made.
Vice Premier He also emphasized China’s readiness to work with the United States, stating, “We are ready to manage differences, expand areas of cooperation, and make the pie of cooperation bigger.” However, he simultaneously issued a stern warning that if the U.S. continued to escalate trade tensions, China “will not be afraid” and is prepared to “fight to the end,” according to Reuters.
From the U.S. side, Trade Representative Jamieson Greer, who participated in the talks alongside Treasury Secretary Scott Bessent and two Chinese vice-ministers, described the outcome as a “deal we struck with our Chinese partners.” He highlighted the pace and tone of the talks, saying: “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,” according to a White House release.
Despite the diplomatic tone and reported progress, a major question remains unresolved: how the negotiations will address the Trump administration’s newly established 10% baseline tariff on all imported goods — a policy that currently affects not only China but nearly every trading partner of the United States.
Commerce Secretary Howard Lutnick confirmed on Sunday that the 10% tariff is not a temporary measure.
“We do expect a 10% baseline tariff to be in place for the foreseeable future,” he told CNN’s Dana Bash on State of the Union, reinforcing comments made earlier by President Donald Trump that the tariff would serve as the foundation for all trade agreements going forward.
President Trump has repeatedly stated that the 10% tariff rate is now the floor and could be “much higher” for countries with significant trade surpluses with the United States. “They made a good deal,” Trump said of the United Kingdom, which recently concluded a trade agreement with Washington. However, he also emphasized that “some will be much higher because they have massive trade surpluses.”
Lutnick defended the policy, insisting that it would not be American consumers who bear the financial burden.
“Businesses, their job is to try to sell to the American consumer, and domestically produced products are not going to have that tariff, so the foreigners are going to finally have to compete,” he said.
But this position has been challenged by economic data and market reactions. Since Trump’s April 2 tariff announcement, consumer confidence has dropped, and the prices of several household goods have already begun to rise, suggesting that businesses are passing on increased costs to customers.
This reality has created a complicated backdrop for the U.S.-China trade discussions. While the Geneva meetings suggest both sides are ready to lower tariffs and de-escalate tensions, it remains unclear whether the Trump administration will be willing to adjust its 10% baseline policy, especially since it has been publicly positioned as a non-negotiable standard.
Moreover, other countries affected by the tariff policy — including U.S. allies like Canada, Japan, and South Korea — remain in uncertainty, with no clear timeline for when, or if, exemptions or modifications will be considered.
As the U.S. and China prepare to release a joint statement and move into a new phase of consultation, the outcome of these talks could either mark the beginning of a new cooperative era or reignite global trade tensions, especially if the Trump administration’s tariff floor proves to be a ceiling too high for partners to accept.
Until further clarification is provided on how the 10% tariff will be applied to China and other countries, optimism about the Geneva breakthrough will likely remain tempered by lingering uncertainty.