Trump Optimistic About Trade Talks with China
On May 11, 2025, President Donald Trump shared his optimism regarding trade discussions with China, hinting at a potential “complete reset” in the trade relationship following initial meetings in Geneva.
In a post on Truth Social, he stated, “A very good meeting with China in Switzerland today. A lot has been discussed and a lot has been agreed. The complete reset was negotiated in a friendly yet constructive way. We want to see the opening from China to American business for the benefit of China and the US.”
The negotiations are set to continue on Sunday, though China’s communications agency cautioned against using negotiations as a pretext for coercion, firmly rejecting any proposals that compromise their core principles or global stability.
This round of talks comes after Trump imposed a 145% tariff on Chinese exports to the U.S., prompting China to respond with a 125% tariff on American goods.
Trump has often stated that tariffs could boost domestic production, aiding in balancing the significant $1.2 trillion trade deficit from 2024.
Before the approximately seven-hour discussions, Trump suggested lowering China’s tariffs to “80%,” but a White House spokesperson indicated that China needs to make concessions for the U.S. to consider lowering its tariffs.
The Commerce Secretary, Howard Lutnick, noted on Friday that the president wishes to resolve these trade issues with China. He emphasized the need to address the trade imbalance rather than accept the current deficit.
“So, while this idea is escalating, let’s get China’s trade right and sign a trade deal with other parts of the world,” he remarked, adding, “Let’s reduce the trade deficit. Let’s grow GDP.”
Treasury Secretary Scott Bescent mentioned in April that China is under pressure to secure a trade agreement, especially since its exports to the U.S. significantly exceed those coming from China, which could lead to job losses if tariffs persist.
Bescent warned, “Even if tariffs drop, they could lose five million jobs. They sell us almost five times more items than we sell to them. So we are responsible for removing these tariffs.”
