US, China poised for 100%+ tariff reductions? Reports suggest Geneva talks near breakthrough

The tariff reductions agreed upon by both China and the U.S. will exceed 100%, reports claim, signaling a dramatic pivot from the bruising trade war that has rattled global markets.

Talks between Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng wrapped up Sunday in Geneva with what officials called “substantial progress.” The White House hinted at a deal, although no formal agreement was unveiled.

“This is a huge positive in the right direction for the markets,” Wedbush analysts wrote in a note Monday, adding that “more progress has come out of these Swiss talks than even the bulls were hoping for.” The analysts expect the steep 145% tariffs imposed by Washington to drop sharply, potentially coupled with a freeze on further levies as negotiations advance.

Bessent emphasized the pace of the talks, calling them “productive” and highlighting how swiftly the two sides were able to bridge gaps previously seen as intractable. “It’s important to understand how quickly we were able to come to an agreement,” Greer said, implying that “perhaps the differences were not as large as maybe thought.”

The Geneva meetings marked the first face-to-face sessions since President Donald Trump imposed tariffs of 145% on Chinese goods earlier this year, prompting Beijing’s 125% countermeasures and strict rare earths export controls.

While both sides held off announcing specific tariff rollback figures, President Trump had floated an 80% reduction via social media late Friday, while also deferring the final decision to Bessent.

Ajoint statement is expected to provide clearer terms, including how much breathing room U.S. ports, retailers, and manufacturers might get after months of plunging import volumes and disrupted supply chains.

China’s exports to the U.S. fell 21% in April compared to a year ago, according to official data. The pain has been felt across U.S. logistics, trucking, and warehousing sectors, while Chinese factories scramble to reroute trade flows.