Trump announces 'full reset' of US-China relations

Donald Trump hailed a "full reset" in US-China trade relations after the first day of talks between top US and Chinese officials in Geneva aimed at defusing a tariff-fuelled trade war.

The US President praised the “very good” discussions and considered them “a complete reset, conducted in a friendly but constructive manner.”

“We want to see China become more open to American business for the benefit of both China and the United States,” Trump wrote on his social media platform Truth early Sunday morning, adding: “MAKING GREAT PROGRESS!!!”

Earlier, senior US and Chinese officials wrapped up the first day of talks in the Swiss city aimed at de-escalating tensions that threaten to hit the global economy, The Guardian reports. The talks are expected to continue on Sunday, a source close to the discussions said.

Chinese Vice Premier He Lifeng met with US Treasury Secretary Scott Bessent and US Trade Representative Jamison Greer for about eight hours, their first face-to-face meeting since the world's two largest economies imposed tariffs well above 100% on each other's goods.

The tariffs imposed by Trump on China this year now total 145%, with combined US duties on some Chinese goods reaching 245%. China has imposed retaliatory tariffs of 125% on US goods, cementing what appears to be a near-trade embargo between the two countries, The Guardian recalls.

Neither side made any statements on the substance of the discussions or reported any concrete progress in reducing the tough tariffs after the meetings at the Swiss ambassador's residence to the UN ended around 8 p.m. local time.

Bessent, Greer and He met in Geneva after weeks of rising tensions over Trump’s tariff blitz that began in February and Beijing’s retaliatory measures that have brought nearly $600 billion a year in bilateral trade to a virtual standstill. The trade dispute, coupled with Trump’s decision last month to impose tariffs on dozens of other countries, has disrupted supply chains, rattled financial markets and fueled fears of a sharp global economic downturn.

The location of the talks at the Swiss diplomatic center was never made public. However, witnesses saw both delegations returning from a lunch break to the UN ambassador's gated villa in Cologny.

Earlier, US officials including Bessent and Greer smiled as they left their hotel on their way to the talks. Bessent declined to speak to reporters. Meanwhile, Mercedes vans with tinted windows were seen leaving the hotel where the Chinese delegation was staying.

Washington is seeking to reduce its $295 billion trade deficit with Beijing and persuade China to abandon what the U.S. calls its mercantilist economic model and contribute more to global consumption. Beijing opposes what it sees as outside interference and wants Washington to lower tariffs and clarify what it wants China to buy more of.

China's official Xinhua news agency said in a commentary on Saturday that the US's "reckless abuse of tariffs" had destabilised the global economic order, but added that the talks represented a "positive and necessary step to resolve differences and prevent further escalation".

Economic analysts are not holding out much hope for a breakthrough, The Guardian stresses. Trump said on Friday that an 80 percent tariff on Chinese goods “feels right,” offering for the first time a concrete alternative to the 145 percent tariffs he has imposed on Chinese imports.

Beijing said the US had requested discussions and that China's policy of opposing US tariffs had not changed.

U.S. Commerce Secretary Howard Lutnick told Fox News on Friday: "The president would like to discuss this with China. He would like to defuse the situation."

Trump's press secretary Caroline Leavitt explained that the US will not lower tariffs unilaterally and that China will have to make concessions.

Swiss Economy Minister Guy Parmelin met with both sides in Geneva on Friday and said the fact that talks were taking place was a success.

“If there is a road map and they decide to continue discussions, that will reduce tensions,” he told reporters on Friday, noting that talks could continue on Sunday or even Monday.