The United States and China reported that progress has been made after a weekend of talks aimed at easing trade tensions sparked by President Donald Trump's aggressive imposition of tariffs.

The escalating trade dispute between Washington and Beijing has rattled financial markets and raised fears of a slowdown in the global economy and a sharp rise in US inflation, AFP reported.

“We have made substantial progress between the United States and China in very important trade negotiations,” US Treasury Secretary Scott Besant said in Geneva after the second day of discussions.

“The talks have been productive,” he said, without taking questions, but promised a “full briefing” on the results on May 12.

In a May 11 statement, the White House hailed the “trade deal” with China.

China's Vice Premier He Lifeng said the meetings had made “significant progress,” echoing Besant's words. He described the atmosphere as “frank, thorough and constructive”.

“This is an important first step,” He said. He added that there were plans to issue a joint communique on May 12.

The two sides agreed to set up a joint mechanism aimed at “regular and irregular communications related to trade and trade-related issues,” according to China's representative for international trade Li Chengang.

Asked if the communique would be released before the opening of financial markets, Li replied, “If the dishes are delicious, the timing is not important.”

“Whenever it is published, it will be big, good news,” he stressed.

The meetings marked the first time senior officials from the world's two largest economies have met face-to-face on trade since Trump imposed tough new tariffs on China totaling 145 percent and cumulative USA duties on some Chinese goods reached a staggering 245 percent.

In response, China has imposed 125% tariffs on US goods.

"These discussions mark a significant step forward and hopefully bode well for the future. Against the backdrop of current global tensions, this progress is important not only for the United States and China, but also for the rest of the world, including the most vulnerable economies," World Trade Organization Director-General Ngozi Okonjo-Iweala said shortly after his meeting with He Lifeng. | BGNES