Day 2 of US-China Tariff Talks: No Breakthroughs Yet, But Trump Highlights ‘Great Progress’

GENEVA (AP) — The U.S. and China recently resumed vital talks about tariffs, stirring global economic concerns. However, their views on the negotiations seem to be quite different.

President Trump claimed on social media that “great progress” was underway, hinting at a potential “total reset” of negotiations as discussions moved into their second day. Meanwhile, China’s official news agency took a stern stance, stating that China would “firmly reject any proposal that compromises core principles or undermines global equity.”

Despite the escalating rhetoric, details from the talks remained scarce. Anonymous U.S. officials confirmed to The Associated Press that discussions had resumed Sunday morning, though both delegations stayed tight-lipped when leaving after their sessions.

These negotiations are crucial as they could stabilize world markets shaken by ongoing tensions. Many ships carrying Chinese goods are still at port, waiting for clarity on tariffs before unloading.

In an editorial, Xinhua emphasized that “talks should never be a pretext for continued coercion or extortion.” This highlights China’s commitment to its core principles even amid the talks.

Last month, Trump raised U.S. tariffs on Chinese goods to as high as 145%, prompting China to retaliate with 125% tariffs on American imports. A trade conflict of this magnitude disrupts a trade relationship that was valued at over $660 billion last year.

Before the talks kicked off, Trump hinted that the U.S. could lower its tariffs, suggesting an 80% tariff may be reasonable. This marks the first in-person meeting between the two sides to discuss trade issues, though optimism for a major breakthrough is cautious. Even a small reduction in tariffs, implemented at the same time by both parties, could help rebuild trust.

“The escalating U.S.-China trade war needs urgent negotiation,” said Jake Werner, director of the East Asia Program at the Quincy Institute for Responsible Statecraft. “It’s a positive sign that both sides managed to set aside their prior disagreements.”

The tariff conflict has been exceptionally intense, largely focused on trade practices and economic policies. Trump’s tariffs, including a 20% surcharge designed to combat the influx of fentanyl into the U.S., have had notable impacts, affecting bilateral trade significantly.

China’s trade deficit, which reached a record $263 billion last year, has also been a major point of contention for Trump. This growing deficit underscores the urgency for constructive dialogue to address trade imbalances and alleviate tension between the nations.

Ultimately, the ongoing discussions may either pave the way for progress or further entrench existing divides. As these two economic giants navigate their complex relationship, the outcomes could reverberate far beyond their borders.

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