Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent resumed trade negotiations on Saturday in Geneva, aiming to ease escalating tensions between the world's two largest economies. The high-stakes talks follow months of rising tariffs—currently at 145% on Chinese imports to the U.S. and 125% in retaliation by China—causing global supply chain disruptions and heightened fears of an economic slowdown.
Held discreetly in the Swiss suburb of Cologny, the discussions marked the first face-to-face meeting between the two delegations after a long standoff. Bessent, accompanied by U.S. Trade Representative Jamieson Greer, declined comment but was seen in good spirits as the group departed their hotel donning red ties and American flag pins. The Chinese delegation arrived separately amid marathon preparations along Lake Geneva.
Washington seeks to reduce its trade deficit and push China to shift from what it calls a mercantilist economic model. In contrast, Beijing demands tariff reductions, purchasing clarity, and mutual respect on the global stage. The two sides disagree on who initiated the dialogue, reflecting the underlying mistrust.
Expectations for a breakthrough remain low. However, analysts note that even a basic roadmap or continued engagement could ease investor concerns. President Donald Trump hinted at a new 80% tariff target, while China may seek the same 90-day tariff exemption the U.S. granted other nations.
Swiss Economy Minister Guy Parmelin, who helped facilitate the meeting, praised the effort and confirmed talks could extend through the weekend. WTO Director-General Ngozi Okonjo-Iweala also welcomed the dialogue, calling it a "constructive step" toward resolving the trade war, which remains fueled by disputes over fentanyl precursor exports and broader geopolitical friction.