President Donald Trump said there was “great progress made” in the trade talks that began yesterday between the United States and China, signaling a possible thaw in the trade war sparked by his massive tariffs.
“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. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!” Trump wrote on Truth Social.
It was the first public comment from Trump after the day of talks in Geneva, which will continue today, according to a source briefed on the meetings.
Setting expectations: Trump’s Treasury Secretary Scott Bessent, who is leading the US delegation, urged the public earlier this week not to expect a major trade deal out of the meetings, instead characterizing them as an opportunity to establish a constructive tone and agree on some basic principles.
Chinese state-run news agency Xinhua called the Switzerland talks “an important step toward resolving the issue.”
“However, an ultimate solution requires sufficient strategic patience and determination, as well as the just support of the international community,” Xinhua said.
How we got here: The US has placed a minimum 145% tariff on most Chinese imports, and China has responded with a 125% tariff on most US imports. As a result, trade between the two sides is falling sharply, according to logistics experts.
Even reducing that tariff rate by half might not be enough to change trade levels significantly. Economists have said 50% is the make-or-break threshold for the return of somewhat normal business between the two countries. And the combination of fewer goods arriving in the US and increased costs on imports that do arrive has already started pushing up prices for Americans.
Hours after Bessent set off for Switzerland on Friday, Trump floated the possibility of slashing tariffs on Chinese goods to 80% while demanding China “open up its market to USA.”
