US-China trade talks make ‘great progress’

Donald Trump hailed a ‘total reset’ in US-China trade relations, ahead of a second day of talks aimed at de-escalating trade tensions sparked by his aggressive tariff rollout.

US Secretary of Treasury Scott Bessent leaves his hotel to go to a meeting with China's officials on tariffs in Geneva on Saturday. Picture: AFP

US President Donald Trump hailed a “total reset” in US-China trade relations, ahead of a second day of talks on Sunday between top officials from Washington and Beijing aimed at de-escalating trade tensions sparked by his aggressive tariff rollout.

In a Truth Social post early on Sunday morning (AEST), Mr Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner”.

In his post, he wrote: “GREAT PROGRESS!! We want to see, for the good of both China and the US, an opening up of China to American business.”

The marathon conversations, 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 (6pm AEST).

Mr Trump posted on social media after the first day of talks: “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”, without offering details.

The first day of trade talks set the stage for a potential thawing of trade relations between the world’s two largest economies.

In his second term, Mr Trump has slapped 145 per cent tariffs on Chinese goods, and Beijing hit back with 125 per cent duties on American products.

Though some officials departed the meeting early, Mr Bessent and Mr Greer remained for at least an extra hour to continue talks with the remaining Chinese delegation, according to a source.

The talks took place at the residence of the Swiss ambassador to the UN. 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.

Before the meeting, both sides played down expectations of a major shift in trade relations, with Mr Bessent underlining a focus on “de-escalation” and not a “big trade deal”, and Beijing insisting the US must ease tariffs first.

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

Mr Trump has opened the door for lower tariffs. He said in recent days they couldn’t go much higher than the current 145 per cent, so it was likely they would eventually come down.

On Friday, he suggested lowering tariffs to 80 per cent. Commerce Secretary Howard Lutnick later told Fox News the President was expected to keep significant so-called reciprocal tariffs on trade with China but may settle near 34 per cent, which is the rate Mr Trump announced on April 2.

Mr 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 Mr Trump’s 80 per cent idea as a public message to encourage Mr Bessent to try to get closer to completing an arrangement that would lower China’s tariff rate to around 80 per cent, The Wall Street Journal previously reported.

“These talks reflect that the current state of the trade relations with these extremely high tariffs is ultimately in the interests of neither the United States nor China,” Citigroup global chief economist Nathan Sheets said, calling the tariffs a “lose-lose proposition”.

The Wall Street Journal