White House and Beijing officials claim “total reset” after Trump’s tariff blitz leaves global supply chains strained
The White House has announced that the United States and China have reached a trade agreement following two days of high-level negotiations in Geneva, marking what both sides describe as “substantial progress” in defusing a bruising tariff war.
US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng led the closed-door talks—the first face-to-face meeting between senior officials since President Donald Trump escalated tariffs on Chinese imports to 145%. China retaliated with levies of 125% on US goods, leaving nearly US$600bn in annual bilateral trade effectively paralysed.
At a press conference on Sunday, Bessent confirmed that the two sides had made “substantial progress” and that further details would be announced on Monday. “The talks were productive,” he said, adding that President Trump had been kept fully briefed.
China’s Vice-Premier He Lifeng, speaking to reporters via state media, called the discussions “candid” and “substantive”, and confirmed that a joint statement would follow. He described the meetings as “an important first step” toward resolving long-standing tensions, and credited both sides with a spirit of professionalism.
US Trade Representative Jamieson Greer said the speed of the agreement reflected how overstated some of the perceived differences may have been. “It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,” he said.
The Geneva talks, hosted at the residence of Switzerland’s ambassador to the United Nations, were not publicly disclosed in advance. Observers spotted tinted diplomatic vans returning to the site after breaks, but neither side revealed negotiation details until Sunday evening.
President Trump took to his Truth Social platform across the weekend to hail the discussions as “very good” and described the outcome as a “total reset … negotiated in a friendly, but constructive, manner.” He added: “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”
Trump’s comments appear to contradict decades of already substantial US-China trade engagement, including the 2020 “Phase One” trade deal brokered during his first term. That agreement included Beijing’s commitment to purchase more than US$200bn in additional American goods and services, a pledge the Biden administration later criticised China for failing to meet.
The current agreement appears to re-establish a framework for further talks, though Bessent stressed this was not yet a “big trade deal” and offered no specifics on tariff reductions.
Still, the sense of urgency was palpable. US retailers and manufacturers had warned of looming shortages, with one source describing potential “pandemic-level supply-chain shocks.” Meanwhile, Chinese exporters were reportedly facing mounting pressure from idle inventory, with companies like Sorbo Technology saying half their US-bound products were now stuck in warehouses.
Beijing’s decision to engage in talks followed what state media called “global expectations” and pressure from American business interests. Vice Commerce Minister Li Chenggang added, “As we say back in China, if the dishes are delicious, the timing doesn’t matter. Whenever it gets released, it will be good news for the world.”
The World Trade Organization’s director-general, Ngozi Okonjo-Iweala, welcomed the development. “This is a significant step forward,” she said, urging both nations to build on the momentum by restoring predictability and strengthening global confidence.
However, the US Commerce Secretary, Howard Lutnick, indicated that some tariffs would remain in place regardless of progress. “The president would like to work it out with China,” he told CNN. “But there will be a 10% baseline tariff to be in place for the foreseeable future.”
Trump’s tariff policies, especially his sweeping January announcement of universal import tariffs—dubbed “Liberation Day”—had already roiled global trade. More than 60 countries were hit with higher rates, including the EU and China. Additional levies on steel, aluminium, and automotive imports have drawn widespread criticism from trade partners and economists alike.
Despite this, Trump has portrayed the recent talks and a new limited trade deal with the UK as signs of momentum. White House officials say 24 more trade agreements are under discussion, modelled on the UK pact, which includes reduced auto tariffs on a capped number of UK exports.
