Bessent Says US, China Made "Substantial Progress" On Deal After "Very Constructive" 2 Days Of Negotiations

Just hours after Trump praised China tariff talks, saying that "great progress" had been made and that a "total reset" of relations was on the table, the second day of trade negotiations between the US and China concluded moments ago, and there was more good news: Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer said that the US and China made “substantial progress” adding that they will share more details on Monday.

The announcement followed hours of meetings between Bessent, Greer and Chinese Vice Premier He Lifeng. The talks were hosted by the Swiss ambassador to the United Nations, whose residence was used as the venue for the two countries’ teams.

Here are the Bloomberg and Reuters headlines after day 2:

• BESSENT: US, CHINA MADE 'SUBSTANTIAL PROGRESS' ON DEAL
• GREER: IMPORTANT TO UNDERSTAND HOW QUICK WE CAME TO AGREEMENT
• THIS WAS A VERY CONSTRUCTIVE 2 DAYS
• DIFFERENCES NOT AS GREAT AS PREVIOUSLY THOUGHT
• BESSENT: COMPLETE BRIEFING COMING TOMORROW MORNING

Bessent said that "talks were productive" and involved China's Vice Premier, two Vice Ministers who were integrally involved, Ambassador Jamieson and myself." Bessent said that he "will be giving details tomorrow."

"I spoke  to President Trump, as did Ambassador Jamieson last night, and he is fully informed of what is going on. There will be a complete briefing tomorrow morning."

Separately, USTR Jamieson Greer said that "it's important to understand how quickly we were able to come to agreement which were that perhaps the differences were not so large as maybe thought."

"That being said, there was a lot of groundwork that went into these two days... we're confident that the deal we struck with our Chinese partners will help us to resolve, work toward resolving that national emergency."

Tensions between the world’s two biggest economies reached a new high point after President Donald Trump steadily increased tariffs on Beijing to 145%. The duties are supposed to address China’s role in the fentanyl trade, its massive trade surplus with the US, and respond to Beijing’s retaliatory measures imposed after Trump’s opening salvo. China in response increased its tariffs on US goods to 125%. Looking forward, however, Goldman expects a substantial drop in tariffs, expecting them to be cut by at least a half.

The tariff tit-for-tat led to a standoff between the world’s two largest economies, with neither side wanting to budge and no off-ramp in sight; however amid the economic slowdown, both sides acknowledged a reduction in tensions and tariffs is necessary and public talks were announced.