Former President Donald Trump announced “great progress” following a new round of trade negotiations between the US and China held in Switzerland. Trump characterized the discussions as a “total reset” conducted in a “friendly, but constructive” way and emphasized the importance of opening Chinese markets to American businesses.
His post on Truth Social marked his first public comment after the meetings, which included US officials, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer. Talks are expected to continue, signaling a potential thaw in the trade tensions that have escalated over the past year.
Officials Urge Patience as Tariffs Persist and Inflation Concerns Intensify Worldwide
Despite Trump’s upbeat tone, officials involved remained more reserved. Bessent previously warned that a sweeping trade deal was unlikely to emerge immediately, though he stressed the importance of restarting dialogue. Chinese state media echoed a similar sentiment, calling the talks “an important step” but urging patience, determination, and international support for a lasting solution. Vice Premier He Lifeng led China’s delegation, indicating the seriousness with which Beijing approached the discussions.
Trump Hails ‘Total Reset’ in US-China Trade Talks as Tariff Strain and Inflation Risks PersistThe trade conflict has led to steep tariffs: the US has imposed a 145% duty on most Chinese goods, while China retaliated with a 125% tariff on US imports. These measures have caused a sharp drop in trade between the two countries. Even if tariffs were halved, experts believe trade may not return to pre-war levels. Trump suggested reducing tariffs to 80%, but insisted on reciprocal market openness from China. Analysts at Goldman Sachs warned that current policies are already fueling inflation, which may double to 4% by year’s end.
Sharp Drop in Trade Disrupts Economies, Raises Broader Strategic and Human Rights Stakes
Chinese goods—ranging from electronics to clothing—have long been staples in American markets. However, imports have been steadily falling, with projections suggesting a 20% overall drop in the second half of 2025, and a drastic 75–80% reduction in Chinese imports. This shift has contributed to a downturn in the US economy, which saw its first contraction since 2022. China has also felt the blow, with a 21% decline in exports to the US in April and the fastest contraction in its factory output in over a year.
Beyond trade, the US-China negotiations are touching on broader strategic and human rights issues. Trump indicated that he planned to raise the case of Jimmy Lai, a jailed Hong Kong media mogul, during the discussions. Lai’s situation has drawn international scrutiny, though it remains unclear if the topic was formally addressed in Geneva. As the world’s two largest economies, the US and China remain under intense global observation, with any movement in their relationship carrying significant implications for international trade, diplomacy, and geopolitical stability.
