U.S. and China to Hold First Trade Talks in Geneva Since Trump's Tariff Hike

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng in Geneva on May 10-11 for the first trade talks since the U.S. increased tariffs on Chinese goods to 145% in April. China retaliated with 125% tariffs on U.S. imports. The meeting aims to de-escalate tensions rather than finalize a trade deal. Both sides have expressed willingness to engage, despite ongoing economic and geopolitical tensions, including accusations of unfair trade practices and intellectual property theft.

A High-Stakes Meeting Amid Escalating Tariffs

The upcoming talks, scheduled for May 10–11, represent the first direct engagement between U.S. and Chinese trade officials since the Trump administration raised tariffs on Chinese goods to 145% in early April. In retaliation, Beijing imposed its own 125% tariffs on U.S. imports. The meeting in Switzerland is not expected to produce a comprehensive trade agreement but is seen as a critical step toward de-escalating the ongoing tariff standoff.

“This isn’t sustainable, especially on the Chinese side,” Bessent said in a recent interview, referring to the economic impact of the tariffs. He described the current tariff levels as “the equivalent of an embargo,” emphasizing the urgency of initiating dialogue.

Key Participants and Their Roles

The U.S. delegation will be led by Treasury Secretary Scott Bessent, who has been vocal about the economic consequences of the trade war, particularly for China. Bessent has warned that the tariffs could cost China up to 10 million jobs if maintained, citing internal economic data and recent projections.

Joining Bessent is U.S. Trade Representative Jamieson Greer, who is also in Switzerland for meetings with Swiss officials and the U.S. Mission to the World Trade Organization. Greer has stated that his mission, under President Trump’s directive, is to “rebalance our trade relations to achieve reciprocity, open new markets, and protect America’s economic and national security.”

Representing China is Vice Premier He Lifeng, a senior economic policymaker and the country’s lead negotiator on trade matters. He is visiting Switzerland from May 9 to 12 and is expected to meet with both U.S. and Swiss officials during his stay.

The Road to Switzerland

The meeting comes after weeks of public statements and behind-the-scenes maneuvering. While both sides had previously indicated a willingness to engage, formal negotiations had not begun. “China, we have not engaged in negotiations with as of yet,” Bessent told lawmakers during a recent House Appropriations Committee hearing.

President Trump has maintained a hardline stance, stating that he would not drop tariffs simply to bring China to the negotiating table. “They want to meet, and they’re doing no business right now … by not trading, we’re losing nothing,” Trump said at the White House last week.

China, for its part, has insisted that the U.S. must first remove the tariffs before any substantive negotiations can begin. “If the U.S. side wants to talk, it should show its sincerity, and be ready to take action on issues such as correcting wrong practices and canceling the unilateral imposition of tariffs,” China’s Commerce Ministry said in a statement.

Agenda: De-escalation First

According to Bessent, the primary focus of the weekend talks will be de-escalation rather than a comprehensive trade deal. “We’ve agreed to talk – then on Saturday and Sunday, we will agree on what we’re going to talk about,” he said in an interview with Fox News. “My sense is that this will be about de-escalation, not about the big trade deal. We’ve got to de-escalate before we can move forward.”

The talks are expected to cover a range of economic issues, including the mutual impact of tariffs, trade imbalances, and broader concerns about market access and regulatory practices. While no formal agenda has been released, both sides have acknowledged the need to address the current impasse.

A Meeting of Opportunity

Interestingly, the meeting appears to have come together due to overlapping travel schedules rather than a pre-planned summit. “I was going to be in Switzerland to negotiate with the Swiss. Turns out the Chinese team is traveling through Europe, and they will be in Switzerland also. So we will meet on Saturday and Sunday, and we have shared interests,” Bessent explained.

The Treasury Secretary is also scheduled to meet with Swiss President Karin Keller-Sutter to follow up on discussions held during last month’s World Bank Group–International Monetary Fund Spring Meetings.

Broader Context and Tensions

The trade talks come at a time of heightened economic and geopolitical tension. The Trump administration has accused China of unfair trade practices, intellectual property theft, and failing to comply with previous trade agreements. Additionally, U.S. officials have linked trade policy to broader national security concerns, including the flow of fentanyl and its precursors from China to the United States.

China has pushed back against these accusations, labeling the U.S. tariffs as “illegal and unreasonable” and accusing Washington of using economic pressure as a tool of coercion.

Despite the rhetoric, both sides have signaled a willingness to engage. “Everything’s on the table,” Bessent said, though he emphasized that any final decisions would rest with President Trump. “With President Trump … strategic uncertainty will make sure that we get the best deal possible.”

References

• US has yet to launch trade negotiations with China, Treasury secretary says
• Ambassador Jamieson Greer to Travel to Switzerland
• China confirms Vice Premier He Lifeng to talk trade with Bessent this week | Forexlive
• Treasury Secretary Scott Bessent expects ‘de-escalation’ to lead first US-China post-tariff talks as countries set for Switzerland meeting: ‘Not sustainable’
• US officials to meet with Chinese counterparts in Switzerland amid trade war