• The US trade deficit stands at $1.2 trillion, prompting President Trump to declare a national emergency and impose tariffs.
  • A new trade deal with China was announced in Geneva, with officials claiming “substantial progress” but offering few details.

The United States has announced a new trade agreement with China, which officials say will help reduce the country’s “massive” $1.2 trillion trade deficit. The deal was finalised during a series of weekend negotiations in Geneva.

United States Trade Representative Jamieson Greer emphasised the urgency of the situation, noting that President Trump had declared a national emergency over the deficit and imposed tariffs in response.

“The US has a massive $1.2 trillion trade deficit. So the President declared a national emergency and imposed tariffs, and we're confident that the deal we struck with our Chinese partners will help us towards resolving that national emergency [the trade deficit],” said Greer.

Talks Conclude at Swiss Villa

The discussions took place at the residence of the Swiss ambassador to the United Nations. Both Greer and US Treasury Secretary Scott Bessent addressed reporters briefly after the talks wrapped up but declined to take questions.

Specifics of the agreement remain under wraps, with a full briefing scheduled for Monday.

“I’m happy to report that we made substantial progress between the United States and China in the very important trade talks,” Bessent said, according to a White House release.
“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 far as maybe thought,” Greer added.

Tariffs at Historic Highs

Tensions between the two countries have intensified in recent months, with the Trump administration raising tariffs on Chinese imports to a combined 145%. China responded with its own tariffs of 125% on American goods. The tit-for-tat measures have strained trade relations, affecting a trade volume that exceeded $660 billion last year.

Despite limited details, officials assert the agreement marks a step toward narrowing the record $263 billion US trade deficit with China.

Edited by Harshajit Sarmah