Trump Declares ‘Total Reset’ as U.S. and China Slash Tariffs in Breakthrough Trade Deal

Trump Announces ‘Total Reset’ in U.S.-China Trade Relations

President Donald Trump announced a "total reset" in U.S.-China trade relations following high-level discussions in Geneva, Switzerland. The talks, led by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, aimed to address ongoing tariff disputes between the two nations. The White House / Wikimedia

Treasury Secretary Says ‘Substantial Progress’ Made in Geneva Talks

“I’m happy to report that we made substantial progress between the United States and China in the very important trade talks,” Bessent stated on Sunday, noting that further details would be provided in a briefing scheduled for Monday morning. Senator Tim Scott / Wikimedia

U.S. and China Slash Tariffs in Surprise Trade Thaw

On Monday, the United States and China agreed to suspend most tariffs on each other’s goods, marking a significant step toward easing trade tensions. The two countries announced a 90-day pause and a steep reduction in reciprocal tariffs from 125% to 10%. However, U.S. duties on Chinese imports related to fentanyl will remain at 20%, leaving China’s total tariff exposure at 30%. “We had very productive talks,” said U.S. Treasury Secretary Scott Bessent, who credited the Lake Geneva setting with fostering a more constructive dialogue. Markus Winkler / Pexels

Markets Surge as U.S.-China Tariff Deal Eases Global Growth Fears

Markets rallied on news of the breakthrough, with U.S. stock futures surging and oil prices climbing. Analysts hailed the deal as a pragmatic move by both countries, acknowledging that escalating tariffs posed a threat to global growth. Further talks are expected, with attention now turning to unresolved issues, including China’s rare earth export policies. energepic.com / Pexels

Trump Briefed Throughout Trade Negotiations, Says Bessent

Bessent emphasized that the discussions were productive and that President Trump was "fully informed of what is going on." The White House / Wikimedia

Greer: U.S. and China Found Common Ground Faster Than Expected

Greer echoed Bessent's sentiments, describing the two-day negotiations as "very constructive." He highlighted the swift agreement as indicative that "perhaps the differences were not so large as maybe thought." Office of the United States Trade Representative / Wikimedia

$1.2 Trillion Trade Deficit Cited as Key Driver Behind Tariff Push

Greer also pointed to the United States' significant $1.2 trillion trade deficit as a driving factor behind the administration's tariff policies, expressing confidence that the new deal would help address this issue. TBIT / Pixabay

China Pushes Back, Rejects Any Threat to Its Core Trade Principles

However, Chinese state media offered a more cautious outlook. According to the Associated Press, China's official news agency reported that Beijing would "firmly reject any proposal that compromises core principles or undermines the broader cause of global equity." SW1994 / Pixabay

First Official Meeting Since Trump’s Sweeping Tariff Hikes

The Geneva talks mark the first publicized engagement between U.S. and Chinese officials since the Trump administration imposed sweeping tariffs on several countries, including China, earlier this year. Kaboompics.com / Pexels

Beijing’s Retaliation Sparks Fears, But Geneva Talks Hint at Thaw

China responded with retaliatory tariffs on U.S. imports, raising concerns about a potential trade war and its impact on global markets. The recent discussions in Geneva suggest a possible de-escalation, though the full extent of any agreements remains to be seen. Hao Liang / Pexels