Trump says 'total reset negotiated' with China during tariff talks in Geneva
Context:
During recent US-China trade talks in Geneva, President Donald Trump announced significant progress with China, describing the negotiations as a 'total reset.' While no major breakthroughs were reported, discussions lasted over 10 hours and will continue. The talks come amidst a backdrop of reciprocal tariffs, with the US imposing a 145% tariff on Chinese goods and China raising tariffs on US goods to 125%. Trump emphasized a desire for China to open its market to American businesses, aiming to address the US's $1.2 trillion trade deficit. Treasury Secretary Scott Bessent indicated that the tariffs could lead to significant job losses in China, potentially up to 10 million jobs, making the tariffs unsustainable for them.
Dive Deeper:
President Trump announced on Truth Social that substantial progress was made in trade negotiations with China during talks in Geneva, aiming for a 'total reset' in the tariff discussions.
Despite over 10 hours of dialogue between US officials, including Treasury Secretary Scott Bessent, and the Chinese delegation, no major breakthroughs were achieved, but talks are set to continue.
The trade discussions occur in the context of high tariffs, with the US having implemented a 145% tariff on Chinese goods and China responding with a 125% tariff on US goods.
Trump expressed a desire to see China open its market to American businesses, framing the negotiations as beneficial for both countries and emphasizing a constructive and friendly approach.
The US administration seeks to address the nation's $1.2 trillion trade deficit and encourage a resurgence of US manufacturing jobs through these tariffs and negotiations.
Treasury Secretary Bessent highlighted the potential economic impact on China, with the tariffs possibly leading to up to 10 million job losses in China, exerting pressure on China to reduce its tariffs.
The ongoing trade talks are part of a broader strategy to establish fair trade practices and economic balance between the US and China, amidst significant trade imbalances.