Updated: Trump Signals “Total Reset” in U.S.-China Trade Talks \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump announced “great progress” in U.S.-China trade talks taking place in Switzerland, hinting at a possible “total reset” as tariff negotiations resume. While no deal has been reached, both sides confirmed ongoing discussions, raising cautious optimism for easing the economic standoff.
Quick Looks
- Trump touts “great progress” in Switzerland tariff talks.
- 10+ hour talks include U.S., Chinese economic leaders.
- No major breakthrough announced, but discussions continue Sunday.
- Trump hints at “total reset” in trade relations.
- China warns talks shouldn’t involve “coercion or extortion.”
- U.S. tariffs on Chinese goods now at 145%.
- China retaliated with 125% duties on American imports.
- Swiss trade relations also strained amid rising U.S. tariffs.
Deep Look
In a sign that tensions between the world’s two largest economies may be inching toward resolution, President Donald Trump said on Saturday that “great progress” was being made in high-stakes trade talks with China and suggested a “total reset” of relations was on the table.
The discussions, held in Geneva, Switzerland, stretched over 10 hours and included U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and a Chinese delegation led by Vice Premier He Lifeng. Though no tangible breakthroughs were announced, Trump took to Truth Social to frame the meeting in an optimistic light.
“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner… GREAT PROGRESS MADE!!!”
Trump’s remarks, light on specifics, were echoed by officials confirming talks will resume Sunday, potentially shaping the global economic narrative for weeks to come.
Backdrop of Tension: High Tariffs and Global Uncertainty
The Geneva talks come amid escalating trade tensions that have reverberated across global markets. Trump recently raised tariffs on Chinese goods to 145%, citing national security, fentanyl trafficking, and long-standing grievances over Chinese industrial policy. China responded with its own 125% retaliatory tariffs, effectively placing $660 billion in bilateral trade in jeopardy.
The talks were convened at the Villa Saladin, an 18th-century estate overlooking Lake Geneva now owned by the Swiss government. Multiple diplomatic convoys were seen leaving the residence late Saturday, but both delegations avoided the press.
An Associated Press source familiar with the negotiations said the meetings were requested by the U.S. side—a point confirmed in an editorial by China’s official Xinhua News Agency.
“China agreed to the talks after considering global expectations, national interests, and the appeals of U.S. businesses and consumers,” the editorial said.
“But talks should never be a pretext for coercion… China will firmly reject any proposal that compromises its core principles.”
The Long Shadow of Past Trade Failures
This round of talks revives issues left unresolved from Trump’s first term. In January 2020, the U.S. and China signed a Phase One trade deal. China pledged to increase American imports, while the U.S. backed off planned tariff hikes. But COVID-19 disrupted those commitments, and many of the thorniest topics—like industrial subsidies and intellectual property theft—were kicked down the road.
With Trump back in the White House since January, trade has once again taken center stage. In addition to high-profile levies against China, Trump has also targeted other global allies. Nearly all imported goods now face at least a 10% U.S. tariff, part of what Trump describes as a “national economic reset.”
Fentanyl and Forced Technology Transfers Fuel Disputes
Trump’s tariffs on China include a 20% surcharge specifically aimed at pressuring Beijing to do more to halt the flow of fentanyl and precursor chemicals into the U.S. That issue has been front and center for both the White House and Congress.
The remaining 125% tariff coverage stems from earlier complaints that China forces U.S. companies to share trade secrets, subsidizes domestic firms, and engages in cyber espionage targeting emerging technologies such as quantum computing and autonomous vehicles.
“China’s unfair trade practices must end,” Trump said last week, adding that previous attempts to address the issue with diplomacy were “naive.”
Trade analysts agree that progress requires more than rhetoric.
“The best-case scenario is a synchronized de-escalation of tariffs,” said Sun Yun, director of the China Program at the Stimson Center.
“Even a small rollback could stabilize global markets and restore some trust—but it can’t just be words.”
Swiss Tariffs and Diplomatic Strains
While in Switzerland, the U.S. delegation also met with Swiss President Karin Keller-Sutter. Trump had recently imposed a 10% tariff on Swiss exports, with plans to increase it to 31% next week, after briefly suspending harsher measures.
Switzerland’s government has been measured in its response but warned of the impact on critical industries like watches, chocolate, and pharmaceuticals.
“An increase in trade tensions is not in Switzerland’s interests,” the Swiss government said in a statement.
“We are not planning countermeasures at this time, but escalating tariffs will harm both sides.”
As of Saturday, Swiss goods entering the U.S. are facing the 10% levy, which could rise further on Wednesday unless negotiations yield concessions.
The U.S. is Switzerland’s second-largest trading partner, and trade between the two has quadrupled in the past two decades, according to Bern’s economic ministry.
Interestingly, Switzerland abolished all industrial tariffs on January 1, 2023, meaning 99% of U.S. goods enter duty-free—a fact cited by Swiss officials in arguing for reciprocal treatment.
Prospects for Sunday’s Talks
Though President Trump’s tone was upbeat, many experts remain cautious. Previous U.S.-China talks often faltered at the brink of compromise due to disagreements on enforcement, compliance, and sovereignty.
Still, the fact that formal discussions have resumed is a promising shift from months of silence. With economic pressure mounting on both sides—especially amid volatile markets and slowing global trade—analysts say both Washington and Beijing have incentives to ease tensions.
If Sunday’s talks produce even a partial tariff rollback, it could generate optimism in sectors ranging from tech and agriculture to energy and consumer goods. But without a clear, enforceable framework, any short-term relief may prove fleeting.
Updated: Trump Signals Updated: Trump Signals
You must Register or Login to post a comment.