The United States and China have reported 'substantial progress' in their first negotiations since the escalation of the trade war, as stated by U.S. Treasury Secretary Scott Bessent following two days of meetings between senior officials from both countries in Geneva.

During a brief appearance alongside U.S. Trade Representative Jamieson Greer, Bessent praised the 'diligence' of Chinese Vice Premier He Lifeng and the rest of the delegation throughout the discussions.

Bessent characterized the talks as 'productive' and noted that detailed information on their progress would be shared in Washington on Monday.

He emphasized that the discussions were conducted in a spirit of 'cooperation, shared interests, and mutual respect.' Meanwhile, the Chinese government announced an agreement with the United States to establish a mechanism for economic and trade consultations aimed at resolving the tariff conflict.

Vice Premier He Lifeng described the meetings as 'sincere, profound, and constructive,' adding that both countries have made important strides in addressing their differences through dialogue and equal consultations.

Greer noted the purpose of these negotiations, emphasizing the need to address the 'massive' trade deficit that the United States faces, which President Donald Trump has declared a 'national emergency.' He reiterated that the agreements reached in Switzerland could help mitigate this deficit.

The discussions indicate a potential de-escalation of the trade war, which has escalated since early April, resulting in reciprocal tariffs of 145% on Chinese goods and 125% on U.S. products, effectively functioning as trade embargoes.

Both countries have made 'important steps' towards resolving their differences equitably through consultations and dialogue, according to He Lifeng, as reported by state news agency Xinhua.

'A significant consensus has been reached,' he stated, with a joint communiqué expected to be released following the Geneva meetings, which were conducted under strict confidentiality.

He underscored that economic ties between China and the United States could be mutually beneficial.

The groundwork for these negotiations was laid by Bessent’s announcement of the meeting, following a series of tariff escalations that had rendered bilateral trade nearly unviable.

Tensions peaked in mid-April when a White House spokesperson indicated that it was up to China to reach an agreement.

The European Union subsequently announced a 90-day pause on its response to reciprocal tariffs while seeking negotiations with Washington.

Despite this, the European Commission disclosed a proposal for a new package of retaliatory measures that could impose tariffs on U.S. products valued at approximately €100 billion, targeting industrial and agricultural goods.

The ongoing trade conflict, officially initiated on March 22, 2018, with tariffs imposed by Trump during his first administration, has continued under President Joe Biden.

Following Trump’s return to office, he imposed new tariffs shortly after taking office, including a 25% tariff on neighboring countries and a 10% tariff on all Chinese goods.

China has since retaliated with tariffs ranging from 10% to 15% on U.S. products.

In response to these measures, China claimed such actions violate World Trade Organization (WTO) regulations and announced plans to take necessary measures to protect its rights and interests, while the European Union intends to file a complaint with the WTO.

Tensions further escalated on April 2 when Trump announced additional tariffs affecting 184 countries, including high tariffs specific to China.

Notably, a universal 10% tariff remains in effect, emphasized by the continued 125% tariff on Chinese goods.

Recent developments have seen Chinese stock markets open positively following the reported agreement, with major exchanges in Shanghai and Shenzhen rising by 0.73% and 1.28%, respectively, reflecting optimism about the negotiations.