Kathmandu: The United States and China have signed a significant trade agreement following two days of negotiations in Geneva, Switzerland. The deal is being seen as a major diplomatic win for US President Donald Trump amidst a prolonged trade war between the two economic giants.

The White House confirmed the development in a statement released on May 11, although it did not provide specific details of the agreement. On the Chinese side, Vice Premier He Lifeng stated that a joint statement regarding the agreement would be issued in Geneva on Monday.

Chinese Vice Commerce Minister Li Chenggang described the outcome as "good news for the world," suggesting the agreement could ease tensions and bring stability to the global economy. According to US officials, the deal primarily aims to reduce the substantial trade deficit the US faces with China. Chinese officials echoed the sentiment, saying both parties had reached a meaningful understanding and had agreed to initiate new rounds of economic talks.

The deal comes just weeks after a severe escalation in the trade conflict. In April, the Trump administration imposed 145 percent tariffs on a broad range of Chinese goods, prompting China to retaliate with 125 percent tariffs on US products. The tit-for-tat measures had brought nearly $600 billion in annual bilateral trade to a virtual standstill.

The agreement in Geneva is expected to deescalate tensions and restart stalled trade flows, offering some relief to global markets and businesses affected by the high tariffs and uncertainty.