The Blubber

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced Sunday that they had reached a deal with China aimed at reducing the U.S. trade deficit, citing “substantial progress” following two days of high-level talks in Geneva. However, they provided no specifics, saying full details would be revealed Monday.

Bessent told reporters that President Donald Trump had been kept fully informed of what he described as “productive talks” with Chinese Vice Premier He Lifeng and two senior Chinese vice ministers.

Despite the positive tone, neither official mentioned any plans to roll back the steep tariffs currently in place — 145% on Chinese goods and 125% on U.S. exports — which have brought nearly $600 billion in annual trade to a standstill. They also declined to take questions from the press.

Bessent has previously referred to the current tariff levels as tantamount to a trade embargo between the two largest economies in the world, saying they must be “de-escalated.”

Greer characterized the outcome in Geneva as “a deal we struck with our Chinese partners,” one he said would help address the $1.2 trillion U.S. global goods trade deficit.

“As the secretary said, it was a constructive two days,” Greer noted. “It’s important to recognize how quickly we reached agreement, which suggests the gap may not have been as wide as assumed.” He described Chinese Vice Premier He, Commerce Vice Minister Li Chenggang, and Finance Vice Minister Liao Min as “tough negotiators.”

This weekend’s talks marked the first face-to-face engagement between senior U.S. and Chinese economic officials since President Trump assumed office and launched a sweeping tariff campaign. That campaign began with the declaration of a national emergency tied to the fentanyl crisis and an initial 20% tariff on Chinese goods in February, followed by a 34% “reciprocal” duty in April. Subsequent tariff hikes pushed the rates into triple digits.

China has consistently demanded that tariff reductions be a key component of any trade resolution. On Friday, Trump floated the idea of cutting tariffs to 80% — the first time he publicly proposed a target.

Greer emphasized that substantial groundwork had preceded the Geneva talks and that the resulting deal was aligned with efforts to resolve the national emergency Trump cited in connection with the ballooning trade deficit.

“We’re confident this agreement will help us move toward addressing that national emergency,” Greer said.

A White House press release echoed Bessent and Greer’s comments, though it offered no further details. The headline read simply: “U.S. announces China trade deal in Geneva.”

Chinese officials were expected to hold their own briefing in Geneva later Sunday.

‘Very Eager’ to Talk

Earlier in the day, White House economic adviser Kevin Hassett told Fox News Sunday Morning Futures that Chinese officials were “very, very eager” to engage and rebalance trade ties with Washington.

Hassett also suggested more trade agreements could be on the horizon, possibly as soon as this week. He referenced the previous week’s limited U.K. deal, which left 10% tariffs intact on many British goods, and said similar arrangements were being developed.

Commerce Secretary Howard Lutnick had briefed him on more than two dozen trade deals in the works with USTR Greer, Hassett said. “They all resemble the U.K. deal in form but are each custom-tailored,” he added.

President Trump weighed in overnight with his own upbeat assessment, calling the negotiations “a total reset... in a friendly, but constructive, manner.”

“We want to see China open up to American business,” Trump wrote on Truth Social. “GREAT PROGRESS MADE!!!”