Trump Declares ‘Total Reset’ in US-China Trade Talks, India Could Lose Edge if Tariffs Fall

Donald Trump has hailed a “total reset” in US-China trade relations after the first day of talks between senior American and Chinese officials in Geneva, aimed at easing a tariff war that has choked nearly $600 billion in annual bilateral trade.

Describing the discussions as “very good” and “a total reset negotiated in a friendly, but constructive, manner”, the US President Donald Trump wrote on his Truth Social platform, “We want to see, for the good of both China and the US, an opening up of China to American business,” adding, “GREAT PROGRESS MADE!!!”.

The talks, held at the residence of Switzerland’s UN ambassador, brought together China’s vice-premier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. They met for nearly eight hours but released no statement afterward.

The tariff war, triggered by Trump's imposition of duties up to 145% on Chinese imports and China's retaliation with 125% tariffs, has disrupted supply chains, disrupted markets and slowed growth in both economies.

According to BBC, Chinese exporters have started to feel the strain. Sorbo Technology, a firm that traditionally sold half its output to the US, reported that its products are now “sat in boxes in a warehouse in China”.

Meanwhile, the US economy shrank at an annual rate of 0.3% in the first quarter, as firms struggled to adjust to the new tariff regime.

According to Associated Press, the talks are expected to continue through May 11.

Double-Edged Implications for India

If tariffs are reduced, the move could ease inflation, revive cross-border trade, and boost investor confidence globally. However, the implications for India could be double-edged.

According to The Indian Express, trade tensions between the US and China had, in fact, benefited India. American buyers had started shifting to Indian suppliers following Washington’s imposition of high tariffs on Chinese goods. These tensions also opened up avenues for deeper economic integration between India and Western markets.

But a potential US–China trade agreement may allow Chinese exporters—who still possess a clear technical edge—to quickly reclaim lost ground.

Indian manufacturers acknowledge they are not fully prepared to meet US demand in key sectors such as non-leather footwear, according to The Indian Express.

Experts caution that a rollback of tariffs may not be in India’s best interest. “A US–China trade deal may not be in India’s interest, as emerging markets like India stand to gain from the disruption caused by the ongoing trade conflict,” The Indian Express reported.

While short-term gains have been visible, India’s window of opportunity could shrink quickly if Chinese exports bounce back at scale.

According to reports, as of now, US and China have entered into the second day of tariff talks. However, no breakthroughs have been reported yet.