The high-stakes trade talks between the US and China entered their second day on Sunday, with no significant breakthrough yet, despite early optimism. US President Donald Trump had earlier hailed the talks as a “total reset” in trade relations , but with mounting tariffs still in place, the future of the discussions remains uncertain.
Trump, in a Truth Social post, described the talks as "very good" and said they were "a total reset negotiated in a friendly, but constructive, manner." However, there is no indication that either side is ready to make major concessions, news agency AFP reported.
The talks, which are being held behind closed doors in Geneva, are focused on de-escalating tensions that have been fueled by Trump’s aggressive tariff policies.
The meetings involve US treasury secretary Scott Bessent, trade representative Jamieson Greer, and Chinese vice premier He Lifeng. These are the first in-person discussions between senior officials from both countries since Trump imposed sweeping tariffs on Chinese goods last month, which prompted retaliatory tariffs from Beijing.
The US has imposed tariffs of up to 145 per cent on Chinese imports, with some products facing cumulative duties as high as 245 per cent. China has retaliated with tariffs of up to 125 per cent on US exports, leading to what many analysts describe as a near-total freeze in trade between the two largest economies in the world.
Ahead of the talks, Trump hinted on social media that the US might consider lowering tariffs, suggesting an “80% Tariff on China seems right.” However, his press secretary, Karoline Leavitt, later clarified that any tariff reductions would not be unilateral and would require China to make concessions first.
Saturday’s talks, held at the Swiss ambassador’s villa near Lake Geneva, were marked by caution on both sides. While Bessent emphasized that the focus was on “de-escalation” rather than a major trade deal, China insisted that the US must first ease tariffs to make progress.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, noted that while the very fact that talks are continuing is positive for businesses and markets, he remained skeptical about a major breakthrough. Even with a reduction in tariffs to 70 or 80 per cent, Hufbauer warned that trade between the two countries could still be cut in half.
The Geneva talks come on the heels of a non-binding trade deal between the US and the United Kingdom, which, while offering some limited relief, kept a 10 percent tariff on most British goods.
Analysts have expressed doubts about whether the US-China talks will lead to a meaningful resolution, with Citigroup economist Nathan Sheets noting that while the dialogue is encouraging, expectations for tangible outcomes remain low, said news agency AFP.
Trump, in a Truth Social post, described the talks as "very good" and said they were "a total reset negotiated in a friendly, but constructive, manner." However, there is no indication that either side is ready to make major concessions, news agency AFP reported.
The talks, which are being held behind closed doors in Geneva, are focused on de-escalating tensions that have been fueled by Trump’s aggressive tariff policies.
The meetings involve US treasury secretary Scott Bessent, trade representative Jamieson Greer, and Chinese vice premier He Lifeng. These are the first in-person discussions between senior officials from both countries since Trump imposed sweeping tariffs on Chinese goods last month, which prompted retaliatory tariffs from Beijing.
The US has imposed tariffs of up to 145 per cent on Chinese imports, with some products facing cumulative duties as high as 245 per cent. China has retaliated with tariffs of up to 125 per cent on US exports, leading to what many analysts describe as a near-total freeze in trade between the two largest economies in the world.
Ahead of the talks, Trump hinted on social media that the US might consider lowering tariffs, suggesting an “80% Tariff on China seems right.” However, his press secretary, Karoline Leavitt, later clarified that any tariff reductions would not be unilateral and would require China to make concessions first.
Saturday’s talks, held at the Swiss ambassador’s villa near Lake Geneva, were marked by caution on both sides. While Bessent emphasized that the focus was on “de-escalation” rather than a major trade deal, China insisted that the US must first ease tariffs to make progress.
Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, noted that while the very fact that talks are continuing is positive for businesses and markets, he remained skeptical about a major breakthrough. Even with a reduction in tariffs to 70 or 80 per cent, Hufbauer warned that trade between the two countries could still be cut in half.
The Geneva talks come on the heels of a non-binding trade deal between the US and the United Kingdom, which, while offering some limited relief, kept a 10 percent tariff on most British goods.
Analysts have expressed doubts about whether the US-China talks will lead to a meaningful resolution, with Citigroup economist Nathan Sheets noting that while the dialogue is encouraging, expectations for tangible outcomes remain low, said news agency AFP.
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