The United States and China on Sunday said progress had been made after a weekend of talks aimed at de-escalating trade tensions sparked by President Donald Trump\u2019s aggressive tariff rollout. The increasingly ugly trade spat between Washington and Beijing has rocked financial markets and raised fears of a global economic slowdown, and an inflationary spike in the United States. \u201cWe\u2019ve made substantial progress between the United States and China in the very important trade talks,\u201d US Treasury Secretary Scott Bessent told reporters in Geneva after the second day of discussions. \u201cThe talks were productive,\u201d he said, taking no questions but promising a \u201ccomplete briefing\u201d Monday on the outcome. In a statement Sunday, which did not provide any additional details, the White House hailed what it called a new \u201ctrade deal\u201d with China. China\u2019s Vice Premier He Lifeng told reporters the meetings had achieved \u201csubstantial progress,\u201d echoing Bessent\u2019s remarks, and described the atmosphere as \u201ccandid, in-depth and constructive.\u201d \u201cThis is an important first step,\u201d He said, adding there were plans for a joint communique to be published Monday. The two sides have agreed to set up a joint mechanism focused on \u201cregular and irregular communications related to trade and commercial issues,\u201d China\u2019s international trade representative Li Chenggang said at the same briefing. Asked if the communique would arrive before financial markets opened, Li replied: \u201cIf the dishes are delicious, timing is not a matter.\u201d \u201cWhenever released, it is going to be big, good news,\u201d he said. The meetings marked the first time senior officials from the world\u2019s two largest economies have met face-to-face over trade since Trump slapped steep new levies on China totalling 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent. In retaliation, China put 125 percent tariffs on US goods. \u201cThese discussions mark a significant step forward and, we hope, bode well for the future,\u201d World Trade Organization chief Ngozi Okonjo-Iweala said in a statement shortly after her own meeting with He Lifeng. \u201cAmid current global tensions, this progress is important not only for the US and China but also for the rest of the world, including the most vulnerable economies,\u201d she added. Devil in the details: \u201cIt\u2019s definitely encouraging,\u201d Asia Society Policy Institute (ASPI) vice president Wendy Cutler told AFP after the talks had concluded. \u201cThe two sides spent over 15 hours in discussions,\u201d she said. \u201cThat\u2019s a long time for two countries to be meeting, and I view that as positive.\u201d Ahead of the meetings at the discrete villa residence of Switzerland\u2019s ambassador to the United Nations in Geneva, Trump signalled he might lower the tariffs, suggesting on social media that an \u201c80% Tariff on China seems right!\u201d However, White House Press Secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally. China would also need to make concessions, she said. The fact the talks are even happening \u201cis good news for business, and for the financial markets\u201d, Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics, said in an interview while the talks were ongoing. But Hufbauer cautioned he was \u201cvery sceptical that there will be any return to something like normal US-China trade relations\u201d. Even a tariff rate of 70\u201380 percent would still potentially halve bilateral trade, he said. \u201cThe devil will be in the details,\u201d said Cutler from ASPI. \u201cWithout the details, it\u2019s hard to assess whether the meeting was successful or not.\u201d China\u2019s vice premier went into the discussions buoyed by Friday\u2019s news that China\u2019s exports rose last month despite the trade war. The unexpected development was attributed by experts to a re-routing of trade to Southeast Asia to mitigate US tariffs. The Geneva meeting comes after Trump unveiled a trade agreement with Britain, the first with any country since he unleashed his blitz of global tariffs. The five-page, non-binding deal confirmed to nervous investors that Washington is willing to negotiate sector-specific relief from recent duties. But Trump maintained a 10 percent baseline levy on most British goods. In a Truth Social post Saturday, Trump said the talks had made \u201cGREAT PROGRESS!!\u201d \u201cWe want to see, for the good of both China and the US, an opening up of China to American business,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
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