Customs duties: United States and China to unveil details of trade deal reached over weekend on Monday

The world's two largest economic powers, engaged in a trade standoff since Donald Trump imposed prohibitive customs duties, are expected to issue a joint statement later today.

US Treasury Secretary Scott Bessent said Sunday that the talks had achieved "substantial progress" in a brief statement to the press following a two-day meeting with Chinese Vice Premier He Lifeng. He Lifeng followed suit a few hours later, telling reporters that the talks had achieved "significant progress" after two days of talks that he described as "frank, thorough, and substantive."

Beijing and Washington have agreed to establish a "consultation mechanism" on trade, He Lifeng said. Chinese Vice Minister of Commerce Li Chenggang said the mechanism would allow for "regular and irregular exchanges on trade issues."

In a statement, the White House welcomed what it called a new "trade deal" with China, without providing further details. The Geneva meeting was the first face-to-face meeting between senior officials from the two countries since Mr. Trump imposed a 145% surcharge on goods from China in early April, on top of existing tariffs.

Beijing, which has promised to fight these surcharges "to the bitter end," has retaliated with 125% tariffs on American products. This trade war has shaken global financial markets and fueled fears of inflation in the United States and an economic slowdown.

Investors greeted these announcements with cautious optimism, rather than euphoria. Asian stock markets were generally up at midday (+0.9% in Hong Kong, +0.4% in Shanghai, +0.5% in Seoul, +0.7% in Singapore), with the notable exception of Tokyo (-0.1%).

“These discussions mark a significant step forward and, we hope, bode well for the future,” said World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala, after meeting with He Lifeng. “This progress is important not only for the United States and China, but also for the rest of the world, especially the most vulnerable economies.”

The negotiations took place behind closed doors in the residence of the Swiss representative to the United Nations, a luxurious villa nestled on the left bank of Lake Geneva.

"It's very encouraging," said Wendy Cutler, vice president of the Asia Society Policy Institute (ASPI), after the talks ended. "The two sides talked for over 15 hours. It's a very long meeting for two countries, and I see that as a positive." However, "the devil is in the details," she added.