Results of Geneva Trade Talks

Here’s the Joint Statement on China-U.S. Economic and Trade Meeting in Geneva:

The Government of the People's Republic of China ("China") and the Government of the United States of America (the "United States"),

Recognizing the importance of their bilateral economic and trade relationship to both countries and the global economy;

Recognizing the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship;

Reflecting on their recent discussions and believing that continued discussions have the potential to address the concerns of each side in their economic and trade relationship; and

Moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect;

The Parties commit to take the following actions by May 14, 2025:

The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order; and (ii) removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025.

China will (i) modify accordingly the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10 percent on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025; and (ii) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.

After taking the aforementioned actions, the Parties will establish a mechanism to continue discussions about economic and trade relations. The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the U.S. side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative. These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues. [My Emphasis]

A reduction in tax rates but not an elimination of the tariffs. A good first step and much better than no reductions. The top headline at Guancha: “The results of the China-US economic and trade talks have far exceeded expectations and are a very good starting point.” Financial market players clearly liked the news with rallies happening almost universally. However, “Analysts believe that the trade issue between China and the United States should not be expected to be easily resolved, but the consensus reached between China and the United States has eased trade tensions and created a good starting point for follow-up engagement.” The following observation is key:

While the market reaction was positive, some analysts warned that this was only a temporary result, and that the two sides had not yet found a solution to the differences and frictions in the Sino-US economic and trade relationship. However, analysts also believe that the economic and trade talks in Geneva have created a good starting point for subsequent engagements….

While the situation is no longer as bad as people think, that doesn't mean it's back to before Trump took office, with a 90-day moratorium, and the 10% "base tariff" announced by the United States still in place, "There is still a great deal of uncertainty about how these tariffs will be resolved, and their impact on world economic growth and central bank policy." [My Emphasis]

The Trade War’s intensity was diminished but there clearly is no end that can yet be seen as Bessent said in a press conference. Goods entering the Outlaw US Empire from most of the world will still cost more fueling inflation and lowering living standards. From what we now see with the massive gash being applied to medicare in Trump’s budget proposal so Trump can give the Billionaires more billions, the Class War continues and will only further make Americans More Angry. This move by Trump is essentially a replay of what he tried in 2017 and Congress rejected. None of what Trump’s done has halted the Empire’s decline and many who know say he’s pushed it further to the brink.

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