The US and China signaled optimism following high-stakes trade talks over the weekend, raising hopes for de-escalation in a tariff war that has shaken global markets. US Treasury Secretary Scott Bessent described the discussions in Geneva as making “substantial progress,” with more details promised Monday.
Chinese Vice Premier He Lifeng called it “an important first step,” while President Trump declared on social media: “GREAT PROGRESS MADE!”
The talks come as Trump considers cutting tariffs on Chinese goods and follows the announcement of a breakthrough US–UK trade deal that boosts American exports of beef and ethanol.
Meanwhile, China is reportedly drafting a list of US goods exempt from its 125% tariffs, signaling a desire to ease tensions without making public concessions. Trump, however, has maintained that China “deserves it” and could absorb the tariff impact.
As negotiations continue, the EU has unveiled a list of US goods it could target with tariffs if trade talks break down. Fed Chair Jerome Powell noted that while sentiment has weakened, the full economic impact of tariffs hasn’t yet materialized.