Markets Cheer “Substantial Progress” in U.S.-China Trade Talks Ahead of Key Statement Today

The whole world was waiting for a breakthrough in U.S.-China trade ties, and now it finally seems within reach. After months of tension and silence, the two countries held a two-day meeting in Geneva to discuss trade and economic concerns, especially the widening U.S. trade deficit with China. The talks ended with smiles and handshakes, and both sides described the meetings as “constructive.”

U.S. officials have confirmed a “trade deal” with China to reduce the significant trade gap and ease tensions between the two nations. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described the talks as having made “substantial progress” and said the details would be announced on Monday.

The progress in U.S.-China trade talks has lifted market sentiment, offering hope of easing tensions between the world’s two largest economies. Following the news, U.S. stock futures rose, with the S&P 500 (SPX) up 1.3% and Nasdaq 100 (NDX) futures rising 1.7%. Asian markets also gained following the White House’s signal of a potential deal with China. Hong Kong’s Hang Seng Index jumped 1.03%, while China’s CSI 300 index rose 0.89%.

A Deal in Spirit, If Not Yet on Paper

Though no official document has been released yet, both sides expressed strong optimism about the outcome of the Geneva meeting. They also announced plans for a new consultation platform, a formal forum that will help the two nations manage trade and economic issues more smoothly and prevent further breakdowns. Chinese Vice Premier He Lifeng called the discussions “candid and in-depth,” and said they led to an “important consensus.”

According to Chinese Vice Commerce Minister Li Chenggang, a joint statement is expected Monday and will contain “good news for the world.”

Still, despite the positive signals, neither side revealed specific decisions. There was no mention of the steep tariffs still in place — 145% on Chinese goods and 125% on U.S. products. These tariffs have been a major source of friction since Donald Trump began his term, kicking off a global tariff wave that started with a national emergency over the U.S. fentanyl crisis and a fresh 20% tariff on Chinese goods in February.

Trump Applauds U.S.-China Trade Talks

Trump, who was in Washington during the trade negotiations, also welcomed the Geneva talks. Posting on his Truth Social (DJT) platform, he said both countries had negotiated “a total reset… in a friendly, but constructive, manner.”

He said both nations would benefit from “an opening up of China to American business” and called the outcome “great progress.”