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On May 10th, 2025 US President Donald Trump took to Truth Social to praise the first day of US-China trade talks in Geneva, calling it a “total reset” in relations. As the world’s two largest economies face off over massive tariffs—145% on Chinese imports by the US and 125% on US goods by China—this meeting marks a critical moment. Will these talks ease tensions or are they just a pause in an escalating trade war.? Let’s explore the stakes, updates, and what this means for global markets.

Details & Context

The US-China trade talks began on May 10th, 2025 in Geneva, Switzerland a neutral hub known for discreet diplomacy. This is the first face-to-face meeting since Trump imposed a 145% tariff on Chinese imports earlier this year, sparking a trade war. China retaliated with 125% levies on US goods, grinding $600 billion in annual trade to a near halt, per @TheNewYorkTimes. The US delegation, led by Treasury Secretary Scott Bessent, met with China’s Vice Premier He Lifeng to focus on “de-escalation,” not a full trade deal, per Bessent’s earlier statements.

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Trump’s tariffs, dubbed part of “Liberation Day,” also hit 60 other trading partners, including the EU with higher rates for “unfair trade practices.” A separate 25% tax on steel, aluminium, cars and car parts added fuel to the fire. Last week, the US-UK trade deal cut tariffs on UK cars from 25% to 10% for up to 100,000 vehicles, a move Trump called a “breakthrough,” per Yahoo Finance.

The Geneva talks come after months of economic strain. The US economy shrank by 0.3% in Q1 2025 as businesses rushed to stockpile goods while Chinese exporters like Sorbo Technology saw half their US-bound products stuck in warehouses, per the @BBC. China’s exports rose 8.1% in April, beating expectations, as firms hurried to ship before tariffs fully hit, per @AlJazeera. Yet, both sides are cautious—China demands tariff relief, while the White House insists on concessions.

Posts on X reflect mixed sentiments. @MichaelSCollura celebrated Trump’s “total reset” claim, while @InvestVerified noted market optimism but skepticism about specifics. @GoogleTrends shows searches for “US-China trade talks 2025” and “Trump tariffs” spiking 500% since May 10th, highlighting global interest.

Quotes

· Donald Trump (Truth Social, May 10th, 2025): “Very good meeting with China.! Many things discussed, much agreed to. A total reset negotiated in a friendly but constructive, manner.”

· Scott Bessent (Reuters, May 9th, 2025): “We’re focused on de-escalation, not a big trade deal. Both sides need to move forward carefully.”

· He Lifeng (CGTN, May 10th, 2025): “China engages with the US considering global expectations and our interests. Dialogue must be genuine.”

· @dtiffroberts (X, May 11th, 2025): “Trade talks continue but experts say Beijing has the upper hand. Will tariffs drop below 60%.?”

· Economist Zichun Huang (Al Jazeera, May 9th, 2025): “China’s export growth may turn negative later this year. US tariffs are hitting hard.”

Additional Information

The talks resumed on May 11th, 2025 with little detail released beyond Trump’s post. China’s Ministry of Commerce signalled openness but warned against “unilateral demands,” per @ChinaDaily on X. The White House, via @PressSecretary Karoline Leavitt, rejected lowering tariffs without Chinese concessions, per a May 9th statement. Trump hinted at slashing tariffs to 80% before the talks, a shift from his earlier hardline stance, per @TheGuardian.

Global markets are on edge. The Dow dropped over 100 points on May 9th as investors awaited outcomes, per @CNBC. Gold rose 1% as the dollar weakened, reflecting trade optimism, per Reuters. The US-UK deal while a win is limited—Britain’s $12 billion trade surplus with the US doesn’t mirror China’s massive export imbalance, per @USAToday.

X posts show public division. @Mylovanov shared Trump’s earlier skepticism about China’s economic struggles while @ChinaDaily highlighted Beijing’s call for genuine dialogue. The World Trade Organisation called the talks a “constructive step,” per @TheGuardian but analysts remain doubtful of a major breakthrough, per Reuters.

Impact Analysis

· US Economy: The 0.3% GDP contraction in Q1 2025 reflects trade war fallout. US firms face higher costs, and consumers may see price hikes, per @NPR. X posts with #TrumpTariffs2025 highlight fears of shortages.

· China’s Economy: Chinese exporters are struggling with firms like Sorbo Technology hit hard. Yet, April’s export rise shows resilience, per @AlJazeera. #USChinaTradeTalks trended with 1M+ mentions, reflecting global stakes.

· Global Markets: The trade war threatens a global downturn. Europe is preparing $100 billion in retaliatory tariffs on US goods if talks fail, per @YahooFinance. Investors are wary, per Reuters.

· US-China Relations: A “total reset” could ease tensions but mistrust runs deep. China’s push for tariff relief clashes with US demands, per @Euronews. X discussions (#TradeWar2025, 200K+ mentions) show skepticism.

· Consumers: Tariffs mean higher prices for goods like electronics and cars. US car imports already taxed at 25%, strain buyers, per @Bloomberg.

Conclusion

The US-China trade talks in Geneva, starting May 10th, 2025 offer a glimmer of hope amid a brutal tariff war. Trump’s “total reset” claim and “friendly, constructive” tone suggest progress but with no concrete details and ongoing talks on May 11th, the outcome remains uncertain. Both nations face economic pain—US GDP shrinking, Chinese exports faltering—yet neither wants to appear weak. As global markets watch, these talks could shape trade, prices and geopolitics for years. Stay tuned for Sunday’s developments.

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