Treasury Secretary Scott Bessent announced on Sunday that the Trump administration has achieved significant progress in its trade negotiations with China. The announcement follows a series of high-level discussions held in Switzerland involving key officials from both countries. Bessent indicated that more details would be released on Monday regarding the specifics of the agreements reached.
Bessent, speaking to members of the media from Switzerland, emphasized the productive nature of the talks. He noted the involvement of Vice Premier and two Vice Ministers from the Chinese side, alongside U.S. Trade Representative Jamieson Greer and himself. He further highlighted that both he and Ambassador Greer had briefed President Trump on the developments, ensuring that the President was fully aware of the ongoing negotiations.
The Trump administration has taken a firm stance on trade with China, implementing tariffs as high as 145% on Chinese goods. This aggressive approach is aimed at addressing what the administration views as a chronic trade deficit and achieving greater parity in trade relations. While Trump had initially paused his April 2 reciprocal tariff plan on numerous nations, as countries sought trade agreements, he intensified pressure on China after Beijing responded to U.S. policies with retaliatory tariffs, including 125% duty taxes on American goods.
The meetings in Switzerland between Bessent, Greer, and their Chinese counterparts focused on the future economic relationship between the two nations. President Trump also addressed the situation in a Truth Social post on Saturday evening, sharing his perspective on the negotiations.
Trump’s post declared that a "total reset" had been negotiated with China during the tariff talks in Geneva, describing the discussions as friendly and constructive. He expressed a desire to see China open its markets to American businesses, emphasizing the potential benefits for both countries. Trump concluded his post by stating "GREAT PROGRESS MADE!!!"
Earlier in the month, China’s Ministry of Commerce stated that officials were evaluating an offer from the Trump administration to hold trade talks regarding the 145% U.S. tariffs on Chinese goods. The Ministry noted that the U.S. had recently conveyed information to China through various channels, expressing a desire to engage in discussions.
Prior to this, Trump and his administration had consistently stated their willingness to negotiate with China. On April 8, Trump remarked, "We are waiting for their call. It will happen."
Leading up to the weekend talks with Beijing, Trump also mentioned an 80% tariff on China, suggesting it "seems right."
The announcement of progress with China follows the Trump administration’s recent signing of a trade deal with the United Kingdom. This marked the first trade agreement signed since Trump’s "Liberation Day" announcement on April 2, which involved levying tariffs on nations worldwide to eliminate trade barriers on U.S. goods and create a more level playing field for American exports.
Trump hailed the UK deal as a reaffirmation of reciprocity and fairness as vital principles of international trade. He stated that the agreement would provide American exports, particularly in agriculture, with billions of dollars in increased market access. This would significantly expand access for American beef, ethanol, and other agricultural products.
The UK deal retains an existing 10% tariff on U.K. goods while removing some import taxes on items such as steel and cars.
The apparent breakthrough in trade negotiations with China represents a potentially significant development in the complex economic relationship between the two global powers. The high tariffs imposed by the Trump administration have created considerable tension, and the possibility of a "total reset," as described by Trump, suggests a shift in approach. The details of the agreements reached in Switzerland are eagerly awaited, as they will provide a clearer understanding of the specific concessions and commitments made by both sides.
The administration’s focus on reciprocity and fairness in international trade underscores its commitment to protecting American interests and ensuring a level playing field for U.S. businesses. The success of trade negotiations with both the UK and China, if realized, could signal a new era in U.S. trade policy under the Trump administration. The outcome of these negotiations will likely have far-reaching consequences for the global economy and the future of international trade relations.
