President Donald Trump on Saturday evening lauded the initial round of U.S.–China trade negotiations in Geneva as a “total reset,” signaling a potential pullback of the punishing tariffs that have throttled commerce between the world’s two largest economies. Speaking on his Truth Social platform, Trump described the meeting between U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng as “very good” and “constructive,” without offering granular details of any agreements reached.

The talks, held discreetly at Switzerland’s U.N. ambassador’s residence overlooking Lake Geneva, represent the first face-to-face engagement between senior American and Chinese economic envoys since Trump’s sweeping tariff impositions earlier this year. In February, the administration slapped a 145 percent levy on a broad range of Chinese imports, prompting Beijing to retaliate with reciprocal duties of roughly 125 percent. Those measures have effectively choked off nearly $600 billion in annual bilateral trade, disrupted supply chains and unsettled global markets.

Trump’s social media posts underscored his eagerness to see “an opening up of China to American business,” as he proclaimed “great progress made.” Without specifying which industries or product categories were on the table, he hinted that Bessent and Greer had received sufficient latitude to propose alternative tariff rates, possibly in the 50 to 80 percent range. Over the preceding days, officials had signaled that any reduction would likely stop well above the typical 10 percent baseline that the U.S. applies to other trading partners during paused disputes.

Behind closed doors, negotiators reportedly explored a phased timetable for easing duties. One option under consideration would see a temporary 90-day waiver on select Chinese imports, akin to similar exemptions granted during earlier talks with other countries. In exchange, Washington would demand enforceable commitments from Beijing on non­-tariff barriers, intellectual property protections and limits on chemical exports used in synthetic opioids—areas the Trump administration has heavily criticized.

In public remarks, Trump confirmed that he has been closely involved in steering the talks. “We want a fair deal—no longer a one-way street,” he wrote, emphasizing his desire for China to increase purchases of American agricultural goods, energy products and high-tech machinery. His administration’s broader objective is to shrink a goods trade deficit that reached nearly $300 billion last year, while compelling China to embrace market reforms that shift its economy toward domestic consumption.

Financial markets welcomed Trump’s upbeat tone. The S&P 500 index ended Friday modestly higher, shrugging off earlier jitters about a potential deepening of the trade war. Treasury yields ticked up slightly, reflecting investor expectations that any durable de-escalation would reduce the demand for haven assets. Overseas, Asian equity markets in Hong Kong and Shanghai similarly posted gains, buoyed by hopes that Beijing might soon roll back its retaliatory tariffs.

Despite the optimism in Geneva, analysts caution that reaching a comprehensive agreement will be arduous. China insists that the U.S. remove its “unilateral” duties first, provide a clear list of target sectors for increased imports and treat Beijing as an equal partner. It has rebuffed Washington’s calls to curb state subsidies and technology transfer requirements, arguing these are internal policy matters. China’s official press highlighted that the negotiations marked “a positive and necessary step” but affirmed that Beijing remains “unwavering” in defending its development model.

European and global leaders have watched closely. The Swiss government, which helped broker the meeting, has held separate shuttle diplomacy with both capitals to facilitate dialogue. World Trade Organization officials in Geneva have expressed support for any initiative that restores stability in world trade, noting that protracted tariff battles inject volatility into already fragile commodity and manufacturing sectors.

Domestic political considerations also shape Trump’s messaging. With the 2026 midterm elections looming, demonstrating tangible progress on reducing consumer prices and boosting export-oriented jobs could bolster his standing among key constituencies, especially in the farm belt and industrial states. The administration has rolled out a series of tariff exclusions for U.S. farmers and auto manufacturers; extending or making permanent such carve-outs could form part of a broader package.

In Washington, congressional reactions varied along partisan lines. Some Republicans applauded the prospect of lower tariffs, arguing that high levies risk inflationary spillovers for everything from electronics to household goods. A cohort of Democrats, however, urged caution, warning that premature tariff cuts could undermine leverage over China’s unfair trade practices. Both sides stressed that any deal must include robust enforcement mechanisms to ensure that Beijing honors its commitments.

U.S. business groups, from agriculture to semiconductors, welcomed news of a “reset.” Industry leaders had warned that the tit-for-tat duties were driving relocation of supply chains to alternative markets, eroding America’s competitive edge. Trade associations emphasized that clarity on tariff structures would allow companies to plan capital expenditures and staffing decisions with greater confidence.

Beijing’s corporate sector has also felt the pinch. Exporters report order cancellations and logistical bottlenecks, while multinationals in China face skyrocketing costs for key components. State-owned enterprises have absorbed some of the shock, but private firms—especially in electronics and textiles—echo calls for de-escalation. As markets anticipate the second day of Geneva talks, business circles in Shanghai and Shenzhen express guarded optimism that any rollback of duties could unlock pent-up demand.

On the diplomatic front, China’s negotiators will meet later on Sunday with World Trade Organization Director-General Ngozi Okonjo-Iweala, a move interpreted as an effort to align the Geneva discussions with the multilateral trade architecture. U.S. officials are expected to press for clarity on Beijing’s commitments to reforming industrial subsidies and opening government procurement markets, areas that have long been sources of friction.

Trump’s approach marks a departure from his earlier, more combative stance. In recent weeks, he hinted that even an 80 percent tariff might be sustainable, albeit lower than the current level. He has said that China “wants to make a deal very badly,” and that the administration would keep duties as leverage until Beijing meets specific benchmarks. He also pointed to a newly ratified trade agreement with the United Kingdom—preserving a 10 percent tariff framework while enhancing agricultural and automotive export opportunities—as a template for balanced bilateral pacts.

As diplomats reconvene in Geneva, the stakes remain high. Both sides confront domestic pressures to deliver results: Trump to demonstrate economic gains and China to preserve its export-driven growth model. The coming sessions will test whether rhetoric of a “total reset” can translate into concrete tariff schedules, legal guarantees and dispute-resolution procedures. For now, negotiators proceed with cautious hope that, after months of impasse, the Geneva talks will mark the beginning of a more stable chapter in U.S.–China economic relations.

(Adapted from EconomicTimes.com)