US-China tariff talks to continue on Sunday

Sensitive talks between US and Chinese delegations over tariffs that threaten to upend the global economy ended after a day of prolonged negotiations and will resume on Sunday, an official told The Associated Press.

Hours after the talks concluded, US President Donald Trump posted on social media that a reset on trade between both countries was being discussed.

"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," Trump wrote. "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!!!"

The meeting lasted over 10 hours and featured Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and a delegation led by Chinese Vice Premier He Lifeng.

The official who spoke to the AP requested anonymity because of the sensitivity of the talks, which could help stabilise world markets roiled by the US-China standoff. The talks have been shrouded in secrecy, and neither side made comments to reporters on the way out.

Several convoys of black vehicles left the residence of the Swiss ambassador to the UN in Geneva, which hosted the talks aimed at de-escalating trade tensions between the world's two biggest economies. Diplomats from both sides also confirmed that the talks took place.

Saturday's talks were held in the sumptuous 18th-century ‘Villa Saladin’ overlooking Lake Geneva. The former estate was bequeathed to the Swiss state in 1973, according to the Geneva government.

Prospects for a major breakthrough appear dim. But there is hope that the two countries will scale back the massive taxes — tariffs — they have slapped on each other's goods, a move that would relieve world financial markets and companies on both sides of the Pacific Ocean that depend on US-China trade.

Trump last month raised US tariffs on China to a combined 145 per cent, and China retaliated by hitting American imports with a 125 per cent levy. Tariffs that high essentially amount to the countries' boycotting each other's products, disrupting trade that last year topped USD 660 billion.