Update: Two hours after the US delegation delivered its constructive remarks on the trade talks, China has done the same and it is generally a carbon copy of with what Bessent/Greer said earlier (hardly by accident):
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CHINA’S VICE PREMIER HE LIFENG: ON CHINA-U.S. TRADE TALKS, BOTH SIDES HAD IN-DEPTH EXCHANGE
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HE LIFENG: TRADE TALKS WERE CONSTRUCTIVE, MADE SUBSTANTIVE PROGRESS
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HE LIFENG: BOTH SIDES REACHED IMPORTANT CONSENSUS
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HE LIFENG: BOTH SIDES AGREED TO ESTABLISH CHINA-U.S. TRADE CONSULTATION MECHANISM
Not surprisingly weekend futures are surging on what appears to be a favorable outcome from the weekend talks with Nasdaq up over 2%, breaking pre-Liberation Day highs:
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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.
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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.”
Treasury Secretary Scott Bessent’s statement regarding US-China trade/tariff talks in Geneva ⬇️
“We will be giving details tomorrow. But I can tell you that the talks were productive.” pic.twitter.com/MvfALA5IzR
— Tucker Carlson Network 🇺🇸 Fan Account (@TCNetworkFans) May 11, 2025
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.”
🚨 JUST IN: A DEAL has been struck with the Chinese on trade after Scott Bessent’s discussions…
GREER: “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,… pic.twitter.com/EhpFEC2fKe
— Eric Daugherty (@EricLDaugh) May 11, 2025
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.
Tyler Durden
Sun, 05/11/2025 – 20:40
