#TradeWarEases Trump Declares ‘Total Reset’ in U.S.-China Tariff Talks, Signals Progress Toward Trade Resolution

In a significant development over the weekend, former President Donald Trump announced a “total reset” in U.S.-China trade relations following intensive negotiations in Geneva. The talks, led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, alongside Chinese Vice Premier He Lifeng, marked the first high-level engagement since the escalation of the trade war earlier this year.

The discussions addressed the steep tariffs imposed by both nations—145% by the U.S. and 125% by China—that have strained bilateral trade, which totaled $660 billion in 2024. While specific details remain undisclosed, both sides reported substantial progress and agreed to establish an ongoing economic and trade consultation mechanism.

President Trump expressed optimism about the negotiations, suggesting a potential reduction in U.S. tariffs to around 80%, contingent upon reciprocal actions from China. He emphasized the importance of opening Chinese markets to American businesses and addressing the $1.2 trillion U.S. trade deficit.  Market reactions were positive, with stock futures surging on hopes of a trade deal. The Dow Jones Industrial Average futures rose over 530 points (1.3%), S&P 500 futures gained 1.4%, and Nasdaq futures increased by 1.6%.

A joint statement from both nations is anticipated on Monday, signaling a potential easing of trade tensions and a move toward resolving the protracted tariff dispute.