Trade war: The United States and China will publish details of the trade agreement reached this weekend on Monday.

The United States and China are due to unveil details of the "progress" they say they made this weekend during negotiations in Geneva aimed at defusing tensions over the thorny issue of tariffs. The world's two largest economies, locked in a trade standoff since Donald Trump imposed prohibitive tariffs, are expected to release a joint statement later today.

US Treasury Secretary Scott Bessent said Sunday that the talks had made "substantial progress" in a brief statement to reporters after a two-day meeting with Chinese Vice Premier He Lifeng. He Lifeng followed suit a few hours later, telling reporters that the talks had made "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 agreement" with China, without providing further details. The Geneva meeting was the first face-to-face meeting between senior officials from the two countries since Donald Trump imposed a 145% tariff 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 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 talks took place behind closed doors at 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," Wendy Cutler, vice-president of the Asia Society Policy Institute, told AFP after the talks ended. "The two sides discussed for more than fifteen 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. The meeting in Geneva came two days after Donald Trump unveiled a trade deal with the UK , the first since he imposed more or less prohibitive tariffs on all countries.