Trump hails Geneva talks as a “total reset” in US-China trade relations, despite ongoing tensions and steep tariffs. Dialogue continues Sunday.

Trade Reset Signals Shift in US-China Relations

In a surprising development, U.S. President Donald Trump described Saturday’s US-China talks in Geneva as a “total reset,” following months of escalating tariffs and deepening distrust. While no official agreement has been announced, both sides emphasized the importance of continued engagement. This marks the first face-to-face dialogue between top officials since Trump raised Chinese import tariffs to 145%.

Tariff War Grinds Global Trade

For months, global markets have been reeling from a tit-for-tat tariff exchange between Washington and Beijing. Trump’s move to hike tariffs came with accusations of unfair trade practices and China’s failure to curb fentanyl-related exports. In response, China levied 125% retaliatory tariffs, freezing nearly $600 billion in bilateral trade. This disruption has shaken global supply chains and threatened economic stability.

Although expectations for the Geneva talks were low, China’s Vice Premier He Lifeng met with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer for roughly eight hours on Saturday. The secluded venue—a U.N. ambassador’s villa overlooking Lake Geneva—was kept confidential until diplomats were spotted entering and exiting.

Geneva Talks Offer Hope for De-Escalation

Despite the tension, both parties remained publicly optimistic. Trump claimed on Truth Social that “great progress” was made. He expressed hope for broader market access for American companies in China. However, the absence of concrete announcements left analysts skeptical of immediate breakthroughs.

China’s state media outlet, Xinhua, acknowledged the meeting as “a positive and necessary step.” Yet, it condemned what it called the U.S.’s “reckless abuse of tariffs,” reiterating China’s resolve to defend its development interests and global trade principles.

The Geneva meeting was facilitated in part by Switzerland’s Economy Minister Guy Parmelin, who described the mere occurrence of the talks as a diplomatic win. Ongoing discussions may extend into Monday, offering additional room for progress.

WTO and Tariff Waiver Hopes

During his Geneva visit, He Lifeng is also expected to meet with WTO Director-General Ngozi Okonjo-Iweala. The WTO has welcomed the resumed dialogue as a step toward de-escalation. Market participants are watching closely, with many hoping for a temporary tariff waiver similar to those granted to other nations.

At the same time, Trump hinted at a potential tariff reduction to 80%, a significant drop from the current 145%. This was his first public mention of a specific alternative rate, which could reflect a softening tone amid mounting economic pressure.

China, however, maintains that it will not bow to pressure. Beijing insists on being treated as an equal and demands clarification on U.S. expectations before committing to purchases or policy adjustments.

References

Reuters. (2025). Trump hails China talks, says two sides negotiated ‘total reset’ in Geneva. Reuters.com.

CBS News. (2025). Public Opinion on Trump’s Economic Policies: A National Survey. CBSNews.com.

WTO. (2025). Director-General welcomes Geneva dialogue as step toward easing trade tensions. WTO.org.