President Donald Trump said there have been “great progress” in trade talks that began between the US and China yesterday, indicating the possibility of melting the trade war caused by his massive tariffs.
“A very good meeting with China in Switzerland today. A lot has been discussed and a lot has been agreed. The complete reset was negotiated in a friendly yet constructive way. We want to see the opening from China to American business for the interests of China and the US. Trump wrote about the true society.
According to the conference manual, it was the first public comment from Trump after the day of his speech in Geneva.
Setting expectations: Trump’s Treasury Secretary Scott Bescent, who leads the US delegation, urged the public earlier this week not to expect a massive trade deal from the meeting, instead characterising it as an opportunity to establish a constructive tone and agree to some basic principles.
China’s state-run news agency Xinhua called Switzerland “an important step in solving the problem.”
“However, the ultimate solution requires adequate strategic patience, determination and fair support from the international community,” Xinhua said.
How to: The US imposes a minimum 145% tariff on most Chinese imports, and China responded with a 125% tariff on most US import duties. As a result, logistics experts say trade between the two has fallen sharply.
Simply reducing that tariff rate by half may not be enough to significantly change the trade level. Economists say 50% is a make or break threshold for a somewhat ordinary business to return between the two countries. Also, the combination of fewer goods arriving in the US and the increasing costs of imports arriving is already beginning to boost prices for Americans.
Hours after Bescent left for Switzerland on Friday, Trump raised the possibility of cutting China’s tariffs to 80%, demanding China “open the market to the US.”