US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang in Geneva for trade talks aimed at de-escalating trade tensions between the United States and China. These talks followed President Donald Trump's imposition of steep tariffs on China, reaching 145 percent on some goods, with China retaliating with 125 percent tariffs on US goods. The meetings represent the first face-to-face discussions between senior officials since the tariff increases.

Both sides expressed optimism after the talks, with China's He Lifeng describing the atmosphere as "candid, in-depth, and constructive," and calling the discussions "an important first step." The two countries agreed to establish a joint mechanism for regular communication on trade and commercial issues. The White House also acknowledged a new "trade deal" with China, although specifics were not immediately provided.

WTO chief Ngozi Okonjo-Iweala hailed the talks as a significant step forward. Before the Geneva meeting, Trump hinted at the possibility of lowering tariffs, suggesting an "80% Tariff on China seems right!" However, White House Press Secretary Karoline Leavitt clarified that any reduction in tariffs would require concessions from China.

Wendy Cutler from the Asia Society Policy Institute noted the extensive 15 hours of discussions as a positive sign but cautioned that "the devil will be in the details." The Geneva meeting took place shortly after Trump announced a trade agreement with Britain, offering sector-specific relief from recent duties, though maintaining a 10 percent levy on most British goods.

Citigroup global chief economist Nathan Sheets viewed the talks as "a beginning of the narrative, the beginning of a dialog," emphasizing that it marks the start of a process. Asian markets responded positively to the news of progress in trade talks, with stocks rallying in Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington. US futures also saw a surge, and the dollar and oil prices increased. However, analysts such as Karsten Junius from Bank J. Safra Sarasin remain cautious, anticipating continued market volatility and potential obstacles in trade negotiations.