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Updated May 11th 2025, 07:56 IST

Trump Announces 'Total Reset' in US-China Ties After Switzerland Talks, Hints at Lower Tariffs

Trump hails a "total reset" in US-China ties after Switzerland talks. Both sides discuss trade, tariffs, and economic cooperation, raising hopes for easing global trade tensions.

Reported by: Aditi Pandey
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Donald Trump, Xi Jinping, US China trade war
Trump Announces 'Total Reset' in US-China Ties After Switzerland Talks, Hints at Lower Tariffs | Image: File photo

Washington: Hours after brokering a ceasefire between India and Pakistan,  US President Donald Trump made another significant diplomatic announcement, revealing a major breakthrough in US-China relations. Speaking from Switzerland, Trump hailed the outcome of his meeting with Chinese officials as a “Total Reset” in the bilateral relationship between the two economic superpowers.

In a statement posted on his Truth Social platform, Trump said, “A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE.”

Trade talks resume after months of silence

This meeting marks the first high-level contact between Washington and Beijing since Trump dramatically increased tariffs on Chinese imports to 145%. In response, China had slapped retaliatory duties of 125% on US goods. The tariff war between the two nations had effectively brought trade to a halt, disrupting global supply chains and raising fears of a broader economic slowdown.

The talks in Switzerland signal a shift from confrontation to conversation, with both sides reportedly willing to explore common ground. While the details of the agreement remain unclear, insiders suggest the dialogue focused on lowering tariffs, improving market access, and stabilizing financial ties between the two countries.

READ MORE: Donald Trump Tweets India And Pakistan Have Agreed To Ceasefire | Republic World

Global economic stakes

The ripple effects of the trade war have been felt worldwide. Several multinational companies were forced to relocate their manufacturing bases, consumer prices soared, and financial markets experienced extended periods of volatility. According to the World Trade Organization, global trade growth slowed to just 1.7% last year — the lowest since the 2008 financial crisis — largely due to rising protectionism between the US and China.

If the current negotiations move forward positively, experts believe it could provide much-needed relief to international markets and give both countries a chance to recalibrate their trade strategies without inflicting further economic pain.

No formal agreement yet, but optimism rises

Despite Trump’s upbeat tone, there has been no formal confirmation from Beijing on the specifics of the "reset." However, Chinese officials have not denied the meeting took place and state-run media outlets have described the talks as “constructive and timely.”

Economists and market analysts are watching closely. A successful deal would mark one of the biggest turnarounds in US-China relations in years, potentially reversing the damaging consequences of the trade conflict and stabilizing global commerce.

Published May 11th 2025, 07:56 IST