U.S. negotiators expressed optimism following two days of discussions with a senior Chinese delegation in Geneva aimed at easing tensions from the ongoing trade war initiated by President Donald Trump’s high tariffs. Treasury Secretary Scott Bessent, leading the U.S. team, noted “substantial progress” had been made, suggesting that the differences between the two nations may not be as significant as previously believed.
Bessent reported a “great deal of productivity” during the talks, aligning with President Trump’s sentiment of “GREAT PROGRESS” made in efforts toward possibly resetting tariffs that have unsettled the global economy. The negotiations were hosted at the Swiss ambassador to the United Nations’ villa, but details remained sparse as officials, including U.S. Trade Representative Jamieson Greer, did not disclose specific discussions and only provided brief statements to the media.
The Chinese delegation maintained a more cautious tone, asserting through a state media editorial that it would “firmly reject any proposal that compromises core principles” and impairs global equity. Despite this, U.S. officials emphasized a priority on reducing the trade deficit, which reached a record $263 billion in the previous year.
Trump’s escalation of tariffs on Chinese goods to a staggering 145% has led China to retaliate with levies of 125%, creating a situation where trade, valued at over $660 billion in the last year, is heavily disrupted. There is optimism among U.S. officials that the latest discussions could stabilize international markets currently shaken by the trade standoff.
Commerce Secretary Howard Lutnick acknowledged that both nations have imposed prohibitive tariffs and suggested the ongoing discussions signal a willingness to lower those barriers. Kevin Hassett, director of the White House National Economic Council, indicated eagerness from the Chinese side to re-establish strong bilateral relations that could benefit both parties.
This meeting marks a significant first as U.S. and Chinese representatives come together to tackle these escalating issues. While expectations for immediate resolutions may be tempered, even modest reductions in tariffs could restore some market confidence.
The positive moves during these negotiations are seen as a hopeful sign that both nations are aiming to break through their recent tensions, potentially heralding a new era of cooperative trade relations.