Trump says U.S. and China negotiated "total reset" in tariff talks
Prolonged discussions in Switzerland aim to address trade barriers affecting global markets.
Sensitive discussions between U.S. and Chinese delegations regarding tariffs that have significant implications for the global economy concluded after a lengthy session and are set to resume.
Following over ten hours of negotiations in Switzerland, President Trump announced on social media that considerable progress had been made in the talks, describing the encounter as a "total reset" negotiated in a constructive manner.
The meeting involved Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, with U.S. Trade Representative Jamieson Greer also attending.
Initial discussions focused on de-escalation rather than finalizing a comprehensive trade deal, as indicated by remarks from Bessent in a prior interview.
The stark tariff increases imposed by both nations, which had reached 145% in the U.S. and 125% in China, were highlighted as unsustainable.
The negotiations took place at the Villa Saladin, an 18th-century estate overlooking Lake Geneva, which served as a discreet venue for discussions aimed at reducing the tariffs that have disrupted mutual trade, valued at over $660 billion in the previous year.
Black vehicles transporting diplomats were observed departing from the Swiss ambassador's residence, which further confirms the high level of confidentiality surrounding the proceedings.
In recent comments, President Trump suggested that Chinese officials are eager to reach an agreement, expressing optimism about potentially lowering tariffs in the future.
Chinese representatives have indicated their willingness to engage in negotiations but have also urged the U.S. to eliminate its unilateral tariffs as a preliminary step.
Tariffs have been a focal point of contention between the nations, with Trump imposing a 10% tax on imports from various countries and escalating tariffs on China specifically, which include a 20% levy aimed at combating the flow of fentanyl into the U.S. Notably, tariffs up to 145% have created a situation where both nations effectively boycott each other's goods.
The Trump administration alleges that China employs unfair practices to bolster its technological advancements and has previously accused Beijing of coercing foreign companies into sharing trade secrets.
Despite these tensions, a Phase One agreement was reached in January 2020, in which the U.S. refrained from imposing further tariffs, and China committed to increasing its purchases of American goods.
However, the anticipated trade was not fulfilled, heavily impacted by the COVID-19 pandemic.
Trade talks between the U.S. and Switzerland also took place, with the potential for tariffs on Swiss goods being lowered as a signal of goodwill.
Bessent expressed optimism regarding these discussions and noted that Swiss businesses are showing interest in substantial investments in the U.S. due to the current administration's economic policies.
Overall, these negotiations occur against the backdrop of an increasingly complex global trade landscape, marked by protective measures and economic interdependencies that call for careful diplomatic engagement.
Following over ten hours of negotiations in Switzerland, President Trump announced on social media that considerable progress had been made in the talks, describing the encounter as a "total reset" negotiated in a constructive manner.
The meeting involved Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, with U.S. Trade Representative Jamieson Greer also attending.
Initial discussions focused on de-escalation rather than finalizing a comprehensive trade deal, as indicated by remarks from Bessent in a prior interview.
The stark tariff increases imposed by both nations, which had reached 145% in the U.S. and 125% in China, were highlighted as unsustainable.
The negotiations took place at the Villa Saladin, an 18th-century estate overlooking Lake Geneva, which served as a discreet venue for discussions aimed at reducing the tariffs that have disrupted mutual trade, valued at over $660 billion in the previous year.
Black vehicles transporting diplomats were observed departing from the Swiss ambassador's residence, which further confirms the high level of confidentiality surrounding the proceedings.
In recent comments, President Trump suggested that Chinese officials are eager to reach an agreement, expressing optimism about potentially lowering tariffs in the future.
Chinese representatives have indicated their willingness to engage in negotiations but have also urged the U.S. to eliminate its unilateral tariffs as a preliminary step.
Tariffs have been a focal point of contention between the nations, with Trump imposing a 10% tax on imports from various countries and escalating tariffs on China specifically, which include a 20% levy aimed at combating the flow of fentanyl into the U.S. Notably, tariffs up to 145% have created a situation where both nations effectively boycott each other's goods.
The Trump administration alleges that China employs unfair practices to bolster its technological advancements and has previously accused Beijing of coercing foreign companies into sharing trade secrets.
Despite these tensions, a Phase One agreement was reached in January 2020, in which the U.S. refrained from imposing further tariffs, and China committed to increasing its purchases of American goods.
However, the anticipated trade was not fulfilled, heavily impacted by the COVID-19 pandemic.
Trade talks between the U.S. and Switzerland also took place, with the potential for tariffs on Swiss goods being lowered as a signal of goodwill.
Bessent expressed optimism regarding these discussions and noted that Swiss businesses are showing interest in substantial investments in the U.S. due to the current administration's economic policies.
Overall, these negotiations occur against the backdrop of an increasingly complex global trade landscape, marked by protective measures and economic interdependencies that call for careful diplomatic engagement.
