Trade talks between the United States and China have resumed in Geneva, Switzerland, aimed at de-escalating trade tensions fueled by tariffs. US President Donald Trump expressed optimism, noting "great progress" and a "total reset" in a Truth Social post after the initial day of discussions. Chinese state news agency Xinhua also described the talks as an important step toward resolving the issue.

The high-level discussions, involving US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, mark the first face-to-face meeting between senior officials since Trump imposed steep tariffs on China. These tariffs have reached 145% on some goods, with cumulative US duties on certain Chinese products hitting 245%. China has retaliated with 125% tariffs on US goods.

Despite Trump's suggestion of lowering tariffs to around 80%, his press secretary clarified that the US would not unilaterally reduce them and that China would also need to make concessions. Expectations remain tempered, with Bessent emphasizing “de-escalation” over a “big trade deal” and Beijing insisting on tariff relief as a prerequisite.

Experts suggest the talks themselves are positive for business and financial markets, though skepticism persists regarding a return to normal US-China trade relations. Citigroup’s global chief economist, Nathan Sheets, pointed out that the high tariffs are ultimately detrimental to both nations. Gary Hufbauer from the Peterson Institute for International Economics cautioned that even reduced tariffs of 70% to 80% could halve bilateral trade.

China's Vice Premier entered the discussions bolstered by recent export figures, which experts attribute to trade re-routing through Southeast Asia to circumvent US tariffs. There's a growing recognition among some Trump officials that China may be better positioned to withstand the trade war.

The Geneva meeting follows Trump’s unveiling of a trade agreement with Britain, signaling a willingness to negotiate sector-specific tariff relief. However, analysts remain pessimistic about significant changes in the US-China trade relationship, anticipating potentially constructive talks without immediate tariff reductions.

The world is closely monitoring the outcome of these high-stakes talks, which aim to ease the trade war that has disrupted global supply chains and raised concerns about an economic downturn. The negotiations resumed on Sunday morning after eight hours of closed-door discussions on Saturday, though no agreement had been announced as of Sunday night Beijing time.