Geneva: A trade deal between the United States and China provides other countries with an opportunity to negotiate their own agreements without being perceived as taking sides between the two superpowers, an expert said Monday, as countries like South Korea seek to establish favorable trade terms with Washington.
According to Yonhap News Agency, following intense negotiations in Geneva, Switzerland, Washington and Beijing announced a deal to temporarily reduce tariffs for 90 days. Under the agreement, U.S. tariffs on Chinese goods will decrease to 30 percent from the current 145 percent, starting Wednesday, while Chinese tariffs on U.S. exports will be lowered to 10 percent from 125 percent.
As these changes take effect, the two nations have agreed to implement a mechanism for ongoing discussions on trade and other economic issues. This forum will feature representatives such as Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and He Lifeng, vice premier of the State Council of China, according to the White House.
The trade deal has captured the attention of South Korea and other nations engaged in talks with the U.S., aiming to mitigate the impact of new "reciprocal" and sectoral tariffs introduced by U.S. President Donald Trump's administration.
"It is too early to tell how negotiations on a broad range of issues will evolve over the next 90 days, but a process to address mutual concerns is an excellent first step," commented Rorry Daniels, managing director of the Asia Society Policy Institute (ASPI) and senior fellow at the Center for China Analysis. "This also gives the rest of the world an opportunity to negotiate their own deals with the U.S. without being singled out as choosing sides between Washington and Beijing."
The significantly high tariffs imposed by the two superpowers have stymied much of their trade, fueling concerns that nations seeking to strike deals with the U.S. could be perceived as biased toward America amid escalating great-power rivalry.
However, the agreement has helped ease the trade war, raising hopes for further cooperation between Washington and Beijing at a time when fears have grown that an intensifying tariff war could lead to higher prices and slower economic growth.
While cautious optimism surrounds talks between the U.S. and China, Daniels noted that the "strategic mistrust" underpinning the Sino-U.S. relationship will influence the extent of concrete progress achievable within the 90-day window and beyond.
"The Trump approach is to seek big, breakthrough deals that come with major commitments and changes, but at this point in the relationship, an incremental and trust-building approach would be more stabilizing in the long term," she said.
Wendy Cutler, vice president of the ASPI, stated that third countries, particularly Asian economies, will welcome the de-escalation between Washington and Beijing. "However, they remain concerned about competing pressures from the U.S. and China," she added.
Cutler described the short-term trade deal as "better than expected." "Both sides agreed to lower their high tariff rates by 115 percent, and importantly, Beijing also agreed to unwind the non-tariff measures it had applied against the U.S.," she explained. "Furthermore, both sides have established a consultation mechanism, which could serve as an important channel of communication. That said, the U.S. will need to ensure that Beijing does not use this venue as a delaying mechanism," she continued.
Cutler also emphasized that the three-month period is an "extremely short" time to address the range of contentious trade matters between the U.S. and China, including excess manufacturing capacity, subsidization of Chinese firms, and transshipment efforts by Chinese companies. "Similar negotiations typically take well over one year," she observed. "The talks also come at a time when U.S. negotiators are already spread thin, negotiating with multiple other countries interested in forging deals with Washington to avoid the reciprocal tariffs assigned to them."
South Korea and the U.S. have been conducting trade consultations focusing on tariff- and non-tariff measures, economic security, investment cooperation, and currency policy. Seoul has emphasized the need to conduct trade talks with the U.S. "without haste" in light of the ongoing domestic situations, particularly the June 3 presidential election, as it seeks a "July package" deal over tariffs and economic and industrial cooperation before July 8, when Trump's 90-day pause on reciprocal tariffs ends.
Washington has been observed striving to reach a deal more swiftly, given its extensive list of countries for trade negotiations.