Trump Touts “Great Progress” in US-China Trade Talks

• President Trump reported “great progress” in US-China trade talks in Switzerland, signaling a potential reduction from the 80% tariffs while Treasury Secretary Bessent leads negotiations with Chinese Vice Premier He Lifeng.
• China has reportedly prepared exemptions to its 125% tariffs on certain US goods, seeking to ease tensions without making public concessions as both sides work toward what Trump called “a total reset” in trade relations.
• The China discussions follow Trump’s recently announced “breakthrough” trade deal with the UK focused on agricultural exports, while EU negotiations have taken a more confrontational turn with threats of retaliatory tariffs.

President Donald Trump has reported “great progress” in the ongoing US-China trade negotiations, as discussions with Beijing extended into Sunday in Switzerland. The high-level talks, led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, appear to be making headway toward resolving tensions that have unsettled financial markets.

“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner,” Trump announced late Saturday, emphasizing that “GREAT PROGRESS MADE!”

The President has signaled openness to reducing the substantial tariffs currently imposed on Chinese goods, stating “80% Tariff on China seems right!” while deferring final decisions to Treasury Secretary Bessent. This represents a potential softening from the administration’s previously hardline stance, when Trump had asserted that China “deserves” the tariffs and would likely absorb their costs.

Reports indicate that China has prepared a list of US products to exempt from its own 125% tariffs, apparently aiming to ease tensions without making public concessions that might appear as political capitulation.

The Switzerland meetings have occurred amid considerable secrecy, though both nations appear motivated to de-escalate the trade conflict. Trump has suggested he might meet directly with Chinese President Xi Jinping following these initial discussions, potentially signaling further diplomatic progress.

The China negotiations follow Trump’s recent announcement of a trade agreement with the United Kingdom, which he described as a “breakthrough” deal designed to expand US agricultural export markets, particularly for beef and ethanol. This marks the administration’s first completed trade agreement since briefly imposing sweeping “reciprocal” tariffs against all trading partners in early April, measures that were subsequently paused.

“We have many trade deals in the hopper,” Trump noted on Friday, suggesting the UK agreement could be the first of several.

Meanwhile, the European Union has taken a more confrontational approach, recently publishing a list of American products it plans to target with retaliatory tariffs should negotiations with the US fail to produce satisfactory results.

The financial markets will likely respond to these developments as investors carefully monitor whether the cordial tone of the US-China discussions translates into concrete policy changes that could reduce trade barriers between the world’s two largest economies.

WallStreetPit does not provide investment advice. All rights reserved.

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