Breakthrough in U.S.-China Trade Talks: Treasury Secretary Announces 90-Day Tariff Pause
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Breakthrough in U.S.-China Trade Talks: Treasury Secretary Announces 90-Day Tariff Pause
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"I'm happy to report that we made substantial progress between the United States and China in the very important trade talks," Bessent stated from Switzerland, where he thanked the Swiss government for providing "this wonderful venue" that contributed to the productivity of the discussions. Full details of the agreement are expected to be released soon, with Bessent confirming that President Trump has been "fully informed" of developments.
Ambassador Greer emphasized the swift nature of the agreement, noting, "It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought." The deal represents a potential turning point after weeks of economic turbulence following President Trump's earlier announcement of sweeping tariffs that triggered significant market volatility.
Bessent's trip to Switzerland had been planned since May 8, when the Treasury Department announced his travel plans included meetings with Swiss President Karin Keller-Sutter and representatives from China. At that time, Bessent stated, "Economic security is national security, and President Donald J. Trump is leading the way both at home and abroad for a stronger, more prosperous America."
The Treasury Secretary has been actively promoting the administration's economic agenda on multiple fronts. On May 13, he spoke at the Saudi-U.S. Investment Forum, highlighting the importance of the U.S.-Saudi relationship. A day earlier, on May 7, Bessent testified before the House Financial Services Committee, where he outlined the administration's economic strategy built on "trade, tax cuts, and deregulation," which he described as "interlocking parts of an engine designed to drive economic growth and domestic manufacturing."
This recent diplomatic breakthrough represents a shift from the market uncertainty that followed President Trump's initial tariff announcements last month, which reportedly led to a $6 trillion drop in U.S. stock market value over two days. Bessent had previously faced criticism for downplaying these market reactions as "short-term," with some analysts questioning his position within the administration.
The China deal announcement has given markets a reason for optimism, with analysts hoping for continued productive negotiations between the world's two largest economies in the coming months.