Geneva: The United States and China have made "substantial progress" in high-level trade negotiations aimed at resolving escalating tensions between the world’s two largest economies, US Treasury Secretary Scott Bessent said on Sunday.

Speaking after two days of talks in Switzerland, Bessent expressed optimism about the outcome, saying the discussions were "productive" and conducted in a "very important" and constructive manner. He credited the Swiss government for hosting the talks, calling the venue conducive to progress.

“We will be giving details tomorrow, but I can tell you that the talks were productive,” Bessent said, adding that he and US Trade Representative Jamieson Greer had briefed President Donald Trump, who initiated the current round of negotiations.

Ambassador Greer also called the talks “very constructive,” emphasising the speed at which both sides were able to reach common ground. “This reflects that perhaps the differences were not so large as previously thought,” he noted. “The deal we struck will help address the national emergency declared due to the $1.2 trillion US trade deficit.”

The talks marked the first face-to-face negotiations since the US imposed sweeping tariffs on Chinese goods last month, triggering sharp retaliation from Beijing. The US currently imposes up to 245% cumulative tariffs on some Chinese imports, while China has responded with tariffs of up to 125% on American goods.

President Trump had earlier described the negotiations as “a total reset” on Truth Social, adding that they were conducted in a “friendly, but constructive” atmosphere.

Chinese state media outlet Xinhua referred to the talks as “an important step” toward resolving the trade dispute. The Chinese delegation was expected to issue a statement later on Sunday.