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Donald Trump says the U.S. and China have had a “total reset” in their trade relationship after the first day of meetings in Switzerland.
He posted on social media that the talks were “very good” and held in a “friendly, but constructive” way.
The trade war between the U.S. and China has grown over time. Trump put tariffs of 145% on Chinese goods. China hit back with 125% tariffs on some U.S. products. After months of rising tension, both countries are now meeting in Geneva for the first time since those tariffs were introduced earlier this year.
At the present time trade between the two countries is more or less at a standstill, with ships carrying thousands of containers wandering the globe unwanted.
Trump added that the U.S. wants China to open up more to American companies and claimed “GREAT PROGRESS MADE!!!”
Talks are continuing on Sunday. U.S. Treasury Secretary Scott Bessent is meeting with China’s Vice-Premier He Lifeng.
White House spokesperson Karoline Leavitt said the U.S. will not reduce tariffs unless China makes its own trade concessions. China also demanded that the U.S. ease tariffs. Bessent said the goal of the talks is “de-escalation,” not a major trade deal.
Chinese state media said Beijing joined the talks after thinking about global pressure, its own interests, and the wishes of U.S. businesses.
Last month, the BBC reported that Chinese companies were struggling. Sorbo Technology, for example, had half its goods stuck in warehouses because they could no longer sell them to the U.S.
The U.S. economy also shrank by 0.3% in the first quarter, partly because companies rushed to import goods before tariffs got worse.
Last month, Trump declared a “Liberation Day” for U.S. trade. He introduced a flat tariff on all imports and added even higher rates for 60 countries, including China and the European Union. He called it payback for what he sees as years of unfair trade.
Trump also put a 25% tax on all imported steel and aluminum, and another 25% on all cars and car parts. A new deal with the UK will reduce that car tariff to 10% for up to 100,000 cars, which is roughly how many the UK exported last year. Cars are the UK’s top export to the U.S., worth about £9 billion.
Source: News agencies.
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