End of First U.S.-China Trade Talks... U.S. Says "Productive Talks, Significant Progress"

Besant: "Significant Progress"... Details to Be Announced on the 12th
Will the U.S. and China Start by Reducing Triple-Digit Tariffs?

Scott Besant, the U.S. Secretary of the Treasury, stated on May 11 (local time) that the first two-day trade negotiations with China had made "significant progress." Attention is focused on whether the two sides have reached a consensus on reducing the triple-digit tariffs that had effectively severed trade. The U.S. government’s optimistic remarks have raised expectations that the U.S.-China tariff war, which had been escalating toward a breaking point, may be partially eased.

AFP Yonhap News

After concluding the trade talks with China in Geneva, Switzerland, Besant told reporters, "I can say the talks were productive," adding, "We will announce the details tomorrow (the 12th)."

Greer, who participated as part of the U.S. negotiating team, explained, "It is important to understand how quickly we can reach an agreement," and noted, "Perhaps the differences were not as great as expected. There was a lot of groundwork."

This meeting marked the first official negotiations between the U.S. and China since both countries imposed tariffs of 145% and 125%, respectively, following the inauguration of President Donald Trump, effectively leading to a trade cutoff. The U.S. delegation included Secretary Besant and U.S. Trade Representative (USTR) Jamison Greer. On the Chinese side, Vice Premier He Lifeng, who oversees economic affairs, led the negotiations. Both sides engaged in a marathon eight-hour negotiation on the 10th, followed by another three and a half hours of talks on the 11th.

The White House also assessed that progress had been made in these negotiations. Kevin Hassett, Chairman of the National Economic Council (NEC), said in an interview with Fox News that China had shown enthusiasm for readjusting its trade relationship with the United States, explaining, "China is very eager to normalize the situation and cooperate."

President Trump wrote on his self-created social networking service (SNS), Truth Social, the previous day, "Today's talks with China were very good," adding, "Many things were discussed and many agreements were reached." He continued, "There was a comprehensive reset negotiation in a friendly but constructive manner," and emphasized, "I want to see China open its market to American companies."

It is expected that a consensus was formed on the issue of reducing triple-digit tariffs during this meeting. President Trump had raised tariffs on Chinese goods to a cumulative 145% during his second term, and the previous day suggested 80% as an appropriate rate. Local media reported that the U.S. government may propose lowering tariffs on Chinese goods to the 50% range. Secretary Besant also stated that the current tariff levels between the U.S. and China are "not sustainable for either side," and reiterated several times that "both sides need to reduce tariffs in a reciprocal manner."