President Donald Trump has announced what he called a “total reset” in trade relations between the United States and China following two days of high-stakes negotiations in Geneva. The discussions, led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, mark a turning point in the ongoing economic standoff that has defined global markets in recent years.
Calling the talks “very good” and “constructive,” Trump praised the progress made and signaled optimism about a new chapter in U.S.-China relations. While no formal deal has been signed yet, both delegations reported significant movement on key issues—particularly regarding tariff relief, intellectual property protections, and Beijing’s role in the global fentanyl crisis.
As it stands, American goods face a 125% tariff in China, while Chinese imports into the U.S. are currently hit with a 145% rate. Trump hinted at reducing U.S. tariffs to 80%—a major concession intended to promote fairer trade—but left the final decision in the hands of Secretary Bessent. The proposed adjustment is contingent on further reforms from China, especially the opening of its markets and tighter enforcement on the export of chemicals linked to fentanyl production.
“This is about fairness and putting American workers and companies first,” Trump said. “We’re not just going back to the old days—we’re setting new standards for transparency, enforcement, and real economic reciprocity.”
The President also reaffirmed that any agreement with China must include stronger protections for U.S. intellectual property, a long-standing issue that has cost American companies billions. While acknowledging that difficult negotiations lie ahead, Trump emphasized that the current talks represent the most productive dialogue with Beijing in years.
Markets have responded cautiously but positively, with investors hopeful that reduced tariffs could stabilize global supply chains and ease inflationary pressures at home.
As the administration continues its push to rebalance America’s trade relationships, this latest round of diplomacy is being seen as a bold step toward ending one of the most complex trade battles in modern history—and as another example of Trump leveraging strength to deliver results on the world stage.