In the heart of Geneva, President Donald Trump remarked that significant strides were being made in U.S.-China trade negotiations, even hinting at the possibility of a comprehensive overhaul as discussions were set to resume on Sunday in Switzerland. Although no significant breakthrough emerged from the intense 10-hour discussions between senior U.S. officials and a Chinese delegation led by Vice Premier He Lifeng, Trump maintained an optimistic outlook.
“Today’s talks with China in Switzerland were very productive,” Trump shared on his Truth Social platform. “We negotiated a possible comprehensive reset in a cordial yet constructive manner. The objective is mutual, enhancing access for American businesses in China. We are witnessing GREAT PROGRESS!!!” Despite this positive tone, Trump did not provide further specifics, and the White House remained tight-lipped about session details during and following day one of the discussions.
An official revealed to a source that the talks would continue on Sunday, although the specifics of the discussions remained classified, given the high stakes involved in potentially stabilizing global markets shaken by the U.S.-China economic dispute. Both parties refrained from making public statements as they departed the meeting.
Chinese state media Xinhua commented on the talks, stating they were initiated by the U.S. and highlighting China’s decision to participate after considering worldwide expectations, national interests, and U.S. commercial and consumer appeals. “Regardless of whether negotiations or confrontations lie ahead, China remains steadfast in protecting its developmental interests and maintaining the global economic order,” Xinhua declared, underlining that talks should not be a guise for ongoing pressure or demands, with China likely to resist any proposition conflicting with core principles or the broader goal of global equity.
Convoys whisking away negotiators marked the end of the first day of talks at the Swiss envoy’s residence to the U.N., aiming to mollify trade tensions between the leading global economies. Officials confirmed their occurrence in the resplendent 18th-century Villa Saladin. Nevertheless, despite Trump’s optimism, a substantial breakthrough appeared improbable as negotiations began. Nonetheless, hopes persisted that both nations might ease the significant tariffs they’ve imposed, relieving financial markets and industries reliant on U.S.-China trade.
Recently, Trump had ramped up U.S. tariffs to 145% on China, which retaliated with its 125% tariffs on U.S. imports, actions that effectively curtailed bilateral trade exceeding $660 billion last year. However, Trump suggested that U.S. tariffs could decrease, as indicated in a Truth Social post where he mentioned, “80% Tariff seems right! Up to Scott.”
Sun Yun from the Stimson Center expressed skepticism about the summit yielding substantive outcomes, marking Bessent and He’s first meeting. She mentioned it would be beneficial if both sides chose to de-escalate tariffs, albeit marginally, as it would project a positive signal. “It shouldn’t just be rhetoric,” she advised.
Upon resuming office, Trump actively wielded tariffs as his primary economic instrument, including imposing a 10% levy on imports from virtually every country. However, the conflict with China has been particularly intense, with tariffs up to 145% resulting from disputes over issues like Beijing’s tech policy and the influx of synthetic opioids into the U.S. Such disagreements were incompletely resolved during Trump’s initial term, with unactioned stipulations from the Phase One agreement crushed by the pandemic, reigniting these quarrels now.
Meanwhile, Trump criticized America’s extensive trade deficit with China that hit $263 billion last year. Similarly, recent discussions included the U.S.’s tariff imposition on Swiss goods and bilateral talks with Swiss President Karin Keller-Sutter. Initially considering 31% tariffs on Swiss products, Trump reduced them to 10% yet warned of potential increases, causing tension within Switzerland, particularly affecting key industries like watches and chocolate.
Switzerland’s government noted the detrimental impact any trade discord might have and refrained from imposing countermeasures, emphasizing importing costs from the U.S. would rise with increasing tariffs. It also pointed out that U.S.-Swiss trade has grown significantly, and most U.S. goods can enter Switzerland duty-free following tariff abolition last year.