US Treasury Chief Bessent Inks China Trade Deal—Wall Street Braces for the Fine Print

Washington and Beijing shake hands on a new trade framework—just don’t ask who’s holding the pen. Treasury Secretary Scott Bessent seals the deal while markets eye the loopholes.

The agreement drops as US tech firms scramble for Chinese semiconductor access—and right before Q2 earnings reports hit. Coincidence? Probably not.

Key takeaways: Tariff rollbacks (with 18-month sunset clauses), renewed agricultural purchases (at 2024 prices), and—shockingly—zero mention of TikTok’s algorithm. Gold ticks up, crypto stays flat—because when has macro news ever moved Bitcoin?

One cynical footnote: The ’voluntary export restraint’ section reads like a Goldman Sachs bonus structure—technically binding until it’s inconvenient.

White House and Commerce back the direction

The meeting in Geneva was the first time Bessent, Greer, and He had met in person since Washington and Beijing hit each other with tariffs over 100%. The deal marks a possible shift in that tariff war, though Bessent did not confirm any actual changes to the current rates.

He did repeat his earlier stance that the tariffs were too high and needed to come down, but avoided giving direct answers about what got agreed.

Kevin Hassett, WHITE House economic adviser, said on Fox News that the Chinese were “very, very eager” to hold the talks and fix their trade relationship with the United States. Hassett also said that deals with other countries could be announced as early as this week.

Trump posted his reaction overnight on Truth Social, calling the talks a “total reset” done “in a friendly, but constructive, manner.” The president also said:

“Many things discussed, much agreed to,” and added, “We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!”

While the trade talks were happening, Commerce Secretary Howard Lutnick also joined his colleagues to announce that the 10% baseline tariff on imports from other countries would stay for now. “We do expect a 10% baseline tariff to be in place for the foreseeable future,” Howard said on State of the Union.

Howard pushed back on the idea that the tariffs would raise prices for US shoppers. “Business and countries will pay,” he said, rejecting the idea that Americans would bear the costs. But recent trends tell a different story.

Since Trump’s April 2 tariff announcement, consumer confidence has dropped and prices on some household items have already gone up. Businesses appear to be pushing some of the cost to buyers.

Howard didn’t mention that. He only said that US producers would have the edge. “Businesses, their job is to try to sell to the American consumer, and domestically produced products are not going to have that tariff, so the foreigners are going to finally have to compete,” he said.

This whole deal, while still mostly under wraps, came together fast. It involved real negotiations. Real stakes. And it put Bessent right in the center of something that could shape US-China economic ties going forward. All eyes are now on Monday.

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