Treasury Secretary Scott Bessent characterized Saturday’s extensive trade negotiations with China as both “substantial” and “productive,” while President Trump announced that a “total reset” in trade relations had been achieved.
The talks, held in Switzerland, marked the first high-level engagement between the two countries since Trump introduced his new tariff policy on April 2. Bessent met with Chinese Vice Premier He Lifeng and indicated he would brief the president on the outcome Monday. U.S. Trade Representative Jamieson Greer, who was also present, noted—according to Reuters—that the gap between the two nations was smaller than previously believed.
“We’ve made meaningful progress in these critical trade discussions with China,” Bessent told reporters. Talks extended into Sunday as both sides worked toward new trade agreements.
Prior to the meeting, Trump suggested a significant reduction in the existing 125 percent tariff on Chinese imports—potentially lowering it to 80 percent or even 50 percent. However, the administration emphasized that such reductions would depend on major concessions from Beijing, including expanded market access for U.S. companies and the lifting or reduction of tariffs on several key American exports.
Some progress has already been made. Agreements have been reached on certain exports, including ethane—an important commodity for major Chinese firms like Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical, and Wanhua Chemical Group. The U.S. suppliers, including Enterprise Products Partners and Energy Transfer, export about half of their annual ethane to China.
In a significant move last month, China lifted its 125 percent tariff on U.S. ethane, adding it to a growing list of exempted products. Other tariff exemptions granted by the Chinese government include pharmaceuticals, microchips, and aircraft engines. Chinese companies have also been instructed to identify additional critical imports that should remain tariff-free.
On Sunday morning, following 10 hours of trade negotiations in Geneva, President Trump announced that the U.S. and China had reached a “total reset” in their trade relationship.
“Had a very good meeting today with China, in Switzerland. Many topics covered, much was agreed upon. A total reset was negotiated in a friendly yet constructive atmosphere,” Trump posted on Truth Social. “For the benefit of both nations, we want to see China open its market to American businesses. GREAT PROGRESS MADE!!!”
This breakthrough follows Trump’s April 2 announcement of sweeping tariffs on dozens of U.S. trading partners, accompanied by a 90-day pause to allow for further negotiations—China notably excluded. Shortly afterward, the administration imposed a 145 percent tariff on all Chinese imports. In response, Beijing levied a 125 percent tariff on American exports.
Treasury Secretary Scott Bessent warned back in April that such tariffs could lead to significant job losses in China, estimating the potential impact at more than 10 million jobs.
“Even with some reduction in tariffs, China could still face a loss of up to 5 million jobs,” Bessent told reporters at the White House. “It’s important to remember: we run the trade deficit. They export nearly five times more to us than we do to them, so the pressure is on them to remove their tariffs.”
