Senior officials from the United States and China opened high-level talks Saturday in Geneva, seeking to de-escalate a trade war that has pushed tariffs above 100%, rattled global markets, and disrupted $660 billion in annual bilateral trade. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng for what the U.S. described as discussions focused on "de-escalation," not a comprehensive trade deal.
The closed-door meetings follow a turbulent month in which President Donald Trump raised combined U.S. tariffs on Chinese goods to 145%. China responded with 125% levies on American imports, effectively paralyzing trade between the world's two largest economies. On Friday, Trump floated a new figure, writing on Truth Social: "80% Tariff seems right! Up to Scott."
The talks were kept largely under wraps. A heavy police presence accompanied both delegations through Geneva, with the U.S. team seen departing the Intercontinental Hotel early Saturday morning and the Chinese group leaving from the lakeside President Wilson Hotel. Chinese state media confirmed the start of the talks by late morning.
U.S. duties include a 20% tariff tied to Beijing's failure to stop fentanyl exports and a 125% bundle of levies related to ongoing disputes over China's tech policy, including alleged forced technology transfers and subsidies to state-owned firms. These measures build on tariffs imposed during Trump's first term, which had already sparked a prolonged standoff.
Beijing insists the U.S. must lift tariffs first. The Chinese government maintains it will defend national interests and retaliate if necessary. "The best scenario is for the two sides to agree to de-escalate on the ... tariffs at the same time," said Sun Yun, director of the China Program at the Stimson Center. "It cannot just be words."
The Geneva summit marks the first direct engagement between Bessent and He. Although expectations for a breakthrough remain low, the World Trade Organization welcomed the meeting. WTO Director-General Ngozi Okonjo-Iweala said Friday the discussions were a "positive and constructive step toward de-escalation."
The broader economic backdrop remains tense. Trump has extended his tariff policy to other trading partners, including a 10% tax on nearly all imports globally. Last month, he suspended a planned 31% tariff on Swiss exports, reducing the rate to 10% for now, but warned it could rise again. Swiss authorities expressed concern, noting that countermeasures would "entail costs for the Swiss economy."
U.S.-Swiss trade, which has quadrupled over two decades, remains critical for Switzerland, its second-largest trading partner after the EU. The Swiss government said that as of Saturday, exports to the U.S. face a 10% duty, with a 21% increase scheduled for midweek. Switzerland removed all industrial tariffs on imports in 2023, meaning nearly all U.S. goods enter duty-free.
In Geneva, Bessent and Greer are also expected to meet with Swiss President Karin Keller-Sutter, whose government has warned of risks to high-profile industries like watches, cheese, and chocolate.
