Trump Hails "Great Progress" After Breakthrough U.S. - China Trade Talks

Former President Donald Trump announced Saturday that “great progress” had been made in U.S.-China trade negotiations, hinting at a possible thaw in the escalating trade war sparked by his steep tariffs.

“A very good meeting today with China in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly but constructive manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!” Trump posted on Truth Social.

It marked Trump's first remarks following a day of talks in Geneva between U.S. officials — including Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer — and their Chinese counterparts. Talks are expected to continue into Sunday, a source familiar with the negotiations told CNN.

Although Bessent had earlier cautioned the public not to expect a sweeping trade agreement from these meetings, he emphasized the talks were an important step forward.

On the Chinese side, Vice Premier He Lifeng is leading the delegation, according to state broadcaster CCTV, which described the talks as “an important step toward resolving the issue.”

However, China’s state news agency Xinhua urged caution, noting, “An ultimate solution requires sufficient strategic patience and determination, as well as the just support of the international community.”

Currently, U.S. tariffs on Chinese goods stand at a staggering 145%, while China has retaliated with 125% tariffs on American imports, causing a sharp decline in trade. Logistics experts warn that even halving these tariffs may not be enough to fully restore normal trade levels. Economists suggest that a 50% tariff is the critical threshold for a meaningful rebound.

Just hours after Bessent and Greer departed for Switzerland, Trump floated a possible reduction of tariffs to 80%, while still demanding China "open up its market to USA."

“80% Tariff on China seems right! Up to Scott B,” Trump posted on Truth Social.

The heavy tariffs have already pushed prices higher for American consumers. Goldman Sachs analysts warned Thursday that a key measure of inflation could double to 4% by year’s end because of the ongoing trade war.

Even if a deal is reached, relief at the checkout line won't be immediate. Ships carrying goods subject to the 145% tariffs are still arriving at U.S. ports.

The scale of Americans’ reliance on Chinese goods — from footwear and clothing to microchips and baby products — is massive. But imports are now shrinking. The National Retail Federation expects a 20% year-over-year drop in total U.S. imports during the second half of 2025, with Chinese imports falling by a staggering 75% to 80%, according to JPMorgan.

Economic Fallout

The tariffs are taking a toll on both economies. U.S. GDP recorded its first quarterly contraction since early 2022 as businesses rushed to stockpile goods ahead of the tariff hikes.

China, too, is feeling the pain. Chinese exports to the U.S. plunged 21% in April compared to a year earlier, according to CNN calculations. Meanwhile, China’s manufacturing sector contracted at its fastest rate in 16 months, adding pressure on Beijing to launch new economic stimulus measures.

The news that Bessent and Greer were meeting with Chinese officials in Geneva sparked hope for a breakthrough. The U.S. and China — the world's two largest economies — together outweigh even the next 20 economies combined, World Bank data shows.

Trump also revealed in a radio interview Wednesday that he planned to raise the case of jailed Hong Kong media tycoon Jimmy Lai during the negotiations. Lai, the outspoken former publisher of the now-defunct Apple Daily, is currently on trial under Hong Kong’s sweeping national security law and faces a possible life sentence.

Chinese media reports, however, made no mention of Lai during coverage of the talks.