On Monday, U.S. President Donald Trump spoke of a potential “total reset” in relations with China after reaching an agreement to reduce reciprocal tariffs. He described the weekend negotiations in Geneva as “very friendly” and praised the current U.S.-China relationship as “very, very good.”
Trump indicated he may speak with Chinese President Xi Jinping “possibly at the end of the week,” as both nations begin implementing the agreement. The deal provides a temporary 90-day reduction in tariffs: U.S. duties on Chinese imports will drop from 145% to 30%, while China will lower its tariffs on American goods from 125% to 10%. A baseline 10% tariff on all U.S. imports will remain in effect. The reductions are expected to take effect by Wednesday.
The agreement emerged from high-level talks held in Switzerland over the weekend and was formally announced on Sunday in a joint statement by the two countries. The statement underscored a mutual commitment to “greater openness, ongoing dialogue, cooperation, and mutual respect.”
Trump, known for using tariffs aggressively in trade negotiations, said talks would continue during the 90-day window. He highlighted China’s openness to U.S. businesses as the most important outcome, though he noted that formal agreements would take time to finalise.
He also reiterated accusations that China contributes to the flow of fentanyl into the United States, stating that Beijing has now committed to taking action to stop it. The U.S. had previously imposed tariffs in part due to China’s role in fentanyl production.
Speaking in Geneva, U.S. Treasury Secretary Scott Bessent said the deal reflects a mutual interest in avoiding economic decoupling. U.S. Trade Representative Jamieson Greer added that new communication channels had been established to help prevent future tariff escalations.
