Stakes rise as US and China prep for second day of trade talks

US President Donald Trump cites progress on negotiating a ‘total reset’ on trade.

US Treasury Secretary Scott Bessent was in Geneva on Saturday for tariff talks with China. Picture: Fabrice Coffrini/AFP/Getty Images

Marathon conversations here between US and China officials came to an end Saturday, with more talks scheduled for Sunday over the continuing trade war between the countries, according to people briefed on the discussions.

The talks, which were led on the American side by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, spanned at least eight hours and concluded without an announced deal. Officials from the countries arrived at the meeting site in Geneva at around 10am local time.

President Trump posted on social media after the first day of talks concluded, saying great progress was made. “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,” he wrote, without offering details.

Chinese leader Xi Jinping decided to dispatch his top aides, The Wall Street Journal previously reported. Notably, in addition to his economic right-hand man, He Lifeng, Xi’s public-security minister, Wang Xiaohong, was also expected to be part of the Chinese entourage.

The first day of trade talks set the stage for a potential thawing of trade relations between the world’s two largest economies. Since starting his second term, Trump has slapped 145 per cent tariffs on Chinese goods while Beijing has hit back with 125 per cent duties on American products.

Though some US and China officials departed the Saturday meeting early, Bessent and Greer remained for at least an extra hour to continue talks with the remaining Chinese delegation, according to one of the people briefed on the discussions.

Bessent, Greer and other officials from both countries who remained were expected to have dinner at the meeting site. Earlier, Greer and Bessent were spotted having lunch with their respective teams, separate from the Chinese delegation at a nearby Italian restaurant.

The talks took place at the residence of the Swiss ambassador to the United Nations. The sprawling property is behind a massive gate on a small, one-way street. Dozens of law-enforcement officials, including the US Secret Service, provided security. Both US and Chinese officials were seen being escorted to the site in black vehicles with tinted windows.

China’s state-run news agency Xinhua described Saturday’s meetings as “an important step toward resolving the dispute” between the two world powers.

Trump has opened the door for lower tariffs. He said in recent days that they couldn’t get much higher than the current 145 per cent, so that it was likely they would eventually come down. And Friday, he suggested lowering tariffs to 80 per cent.

On Friday night, Commerce Secretary Howard Lutnick told Fox News that the president is expected to keep significant so-called reciprocal tariffs on trade with China but may settle near 34 per cent, which is the rate Trump announced on April 2.

Trump has said he wants fairer trade with Beijing – the president has often criticised China’s manufacturing power – and that he wants to curb its role in fentanyl trafficking into the US It is likely the US would want to see some commitments from China on either front before lowering tariffs.

Some administration officials viewed Trump’s 80 per cent idea as a public message to encourage Bessent to try to get closer to completing an arrangement that would lower China’s tariff rate to around 80 per cent, the Journal previously reported.

Dow Jones Newswires