U.S. and China Reach Breakthrough Agreement on Trade War; Trump Admin Hails ‘Substantial Progress’ in Geneva

By: Ariella Haviv

After months of mounting tariffs and escalating rhetoric, the United States and China have reportedly reached a breakthrough agreement aimed at de-escalating the ongoing trade war between the world’s two largest economies. Senior Trump administration officials announced Sunday that a deal was struck during high-level negotiations in Switzerland, a development that could mark a pivotal moment in President Trump’s aggressive economic strategy.

According to a report that appeared in The New York Post, the agreement was finalized during weekend talks in Geneva, where U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng and two Chinese vice ministers. Though specific terms of the agreement remain under wraps, officials from both countries have promised a full briefing on Monday.

President Trump, who has made economic nationalism and bilateral trade deals a cornerstone of his second term, took to social media over the weekend to celebrate the outcome. “GREAT PROGRESS MADE,” Trump wrote on Saturday, signaling confidence in the negotiations and setting the stage for what his administration believes could be a major diplomatic and economic win.

As The New York Post has reported throughout the trade standoff, President Trump has repeatedly targeted Beijing for a range of unfair trade practices — including currency manipulation, forced technology transfers, intellectual property theft, and exporting deadly fentanyl to the United States. These long-standing grievances have fueled bipartisan frustration, but Trump has responded more aggressively than previous administrations.

The U.S. president recently imposed tariffs of up to 145% on a broad spectrum of Chinese goods under a new framework he dubbed “Liberation Day tariffs,” designed to punish what he describes as “unreciprocated economic aggression.” In response, China slapped retaliatory duties on American exports, exacerbating tensions and alarming global markets.

But over the weekend in Geneva, officials from both sides appeared to step back from the brink.

“This was, as the Secretary pointed out, a very constructive two days,” Ambassador Jamieson Greer said in remarks quoted by The New York Post. “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.”

BREAKING: The US says a trade deal with China has been reached and the Trump Administration “will be giving details tomorrow.” pic.twitter.com/VqJsWkY1M0

— The Kobeissi Letter (@KobeissiLetter) May 11, 2025

The announcement comes just days after the Trump administration unveiled a similar framework for a trade agreement with the United Kingdom, indicating that Trump is eager to finalize multiple high-stakes trade arrangements ahead of his self-imposed July 8 deadline. That date marks the moment when, according to his previous declarations, a new wave of customized tariffs will automatically take effect if no agreements are reached.

In the case of China, the administration had already used the threat of those higher “Liberation Day” tariffs as leverage, and The New York Post reported that the strategy may have worked — at least for now.

Secretary of the Treasury Scott Bessent, speaking from Geneva, said the talks benefited from Swiss neutrality and hospitality. “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks,” Bessent said in a statement shared with The New York Post. “We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on.”

While neither Bessent nor Greer disclosed the final terms, both emphasized that the agreement addresses several of Trump’s core demands, particularly regarding the U.S. trade deficit.

“Just remember why we’re here in the first place,” Greer noted. “The United States has a massive $1.2 trillion trade deficit, so the President declared a national emergency and imposed tariffs. We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency.”

Despite the optimism expressed by U.S. negotiators, the deal remains preliminary, and both sides are expected to spend the coming weeks hammering out implementation details. Analysts cited by The New York Post caution that even a “framework agreement” may leave key sticking points unresolved — particularly on enforcement mechanisms and commitments related to intellectual property protection and technology transfers.

China, which remains the United States’ third-largest trading partner, has historically resisted many of Washington’s demands to restructure its export-driven economic model. Trump administration officials believe that tariff leverage and targeted diplomatic pressure have given the U.S. a stronger negotiating position than at any time in recent decades.

Moreover, the Trump administration continues to link trade negotiations to other national security concerns, including the ongoing fentanyl crisis, which Trump blames in part on Chinese chemical exporters. In 2023, Trump imposed an additional 20% tariff as part of a campaign to force Beijing to crack down on fentanyl shipments—a strategy he reiterated in recent public remarks.

As The New York Post reported, Monday’s forthcoming briefing from the White House is expected to offer more granular details about the provisions included in the U.S.–China agreement. Market analysts, business leaders, and foreign policy observers will be watching closely to see whether the deal signals a genuine thaw in bilateral relations or is simply a temporary pause in a broader economic rivalry.

In the meantime, Trump officials remain focused on scoring quick diplomatic wins before the July 8 tariff escalation deadline. With negotiations underway with countries across Europe and Asia, the administration is under pressure to show that its hardline trade policies are yielding concrete results.

If successful, the Geneva agreement with China could serve as a centerpiece of Trump’s second-term foreign policy — and, as The New York Post report has suggested, a cornerstone of his reelection messaging: America First, but on his terms.