U.S. and China to Hold First In-Person Trade Talks in Geneva: Aiming for Tariff De-escalation

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng in Geneva, Switzerland, on Saturday for the first in-person trade talks since the Trump administration's tariff reimposition. The meeting, facilitated by Swiss diplomacy, aims to de-escalate the trade war between the two nations. Both sides have signaled a willingness to engage, though no major agreement is expected. The talks occur amid global economic uncertainty, with the U.S. and China facing economic challenges and Switzerland seeking to address its own trade concerns.

A Diplomatic Stage in Geneva

Switzerland, long known for its tradition of neutrality and hosting international negotiations, has positioned itself as a neutral ground for the U.S.-China dialogue. The Swiss Foreign Ministry confirmed it had actively reached out to both Washington and Beijing to host the talks in Geneva, a city with a storied history of international diplomacy, including the 2021 Biden-Putin summit.

The Swiss government sees the talks as a diplomatic opportunity to reassert its relevance on the global stage. In recent weeks, Swiss Foreign Minister Ignazio Cassis made an unscheduled visit to China, while Economics Minister Guy Parmelin and Finance Minister Karin Keller-Sutter traveled to the U.S. to advocate for Swiss interests, including the removal of U.S. tariffs on Swiss goods, which currently stand at 31%—higher than those imposed on other European nations.

Key Participants and Their Mandates

Leading the U.S. delegation are Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. Bessent, speaking to Fox News ahead of the talks, emphasized that while a major breakthrough is unlikely, the goal is to “de-escalate” the trade war and lay the groundwork for future negotiations.

Representing China is Vice Premier He Lifeng, a close ally of President Xi Jinping and a seasoned economic policymaker. He previously served as deputy mayor of Xiamen and is known for his deep understanding of China’s state-led economic model. He’s primary objective in Geneva is to seek clarity on U.S. intentions and to advocate for the removal of what Beijing calls “unilateral and unjustified” tariffs.

The Tariff Landscape

The talks follow a dramatic escalation in trade tensions. Since returning to office, President Donald Trump has imposed tariffs of up to 145% on a wide range of Chinese imports, citing unfair trade practices and national security concerns. In retaliation, China has levied tariffs of up to 125% on selected American goods.

On the eve of the talks, Trump posted on social media, “80% Tariff on China seems right! Up to Scott B,” signaling a potential willingness to reduce tariffs, albeit from a very high baseline. In earlier remarks, he described the upcoming meeting as likely to be “very friendly” and expressed optimism about restoring a “very good relationship” with China.

China, for its part, has reiterated its demand for the complete removal of U.S. tariffs. A spokesperson for the Chinese Commerce Ministry stated that Beijing “will not sacrifice principle” and called on Washington to “rectify its wrongdoing.”

Economic Backdrop and Strategic Stakes

The economic stakes are high for both countries. The U.S. economy contracted by 0.3% in the first quarter of 2025, raising concerns about a potential recession. Meanwhile, China’s economy grew by 5.4% in the same period, but major banks have revised their full-year growth forecasts downward to around 4%, below the government’s target.

Recent Chinese trade data showed a 21% year-on-year drop in exports to the U.S. in April, while overall exports rose 8.1%, driven by increased shipments to Southeast Asia. This shift underscores Beijing’s efforts to diversify its export markets amid U.S. trade restrictions.

In a move seen as reinforcing its negotiating position, China’s Commerce Ministry launched a “special operation” to crack down on the smuggling of strategic minerals such as gallium, germanium, and rare earths—materials critical to the global tech and defense industries. The U.S. is expected to raise the issue of China’s export controls on these minerals during the talks.

Swiss Interests and Broader Implications

Switzerland is also using the occasion to press its own trade concerns. Swiss officials hope that by hosting the talks, they can persuade the U.S. to lift tariffs on Swiss imports. The country has been disproportionately affected by recent U.S. trade measures, and Swiss leaders see the Geneva meeting as a chance to reassert their role in global diplomacy.

The talks come just days after the U.S. finalized a trade agreement with the United Kingdom, which included tariff reductions on British cars and metals in exchange for increased access to U.S. markets. Other countries are now racing to secure similar deals before the next round of U.S. tariffs takes effect.

Official Statements and Expectations

While no major agreement is expected from this initial meeting, both sides have signaled a willingness to engage. “De-escalating, bringing those rates down to where they should be, I think it’s Scott Bessent’s goal,” said U.S. Commerce Secretary Howard Lutnick. Trump echoed this sentiment, saying, “I think we’re going to have a good weekend with China.”

Chinese officials have maintained a firmer tone. “China will not sacrifice principle to reach [a] deal with U.S.,” a Commerce Ministry spokesperson said, reiterating the demand for full tariff removal.

Despite the hardened positions, both sides have made selective tariff exemptions in recent weeks. The U.S. has exempted certain consumer electronics and auto parts, while China has waived duties on pharmaceuticals, microchips, and aircraft engines. These exemptions suggest a mutual interest in reducing the economic pain of the trade war, even as broader disagreements persist.

References

• China–US tariff talks place Swiss diplomacy on centre stage
• US wobbles ahead of China trade talks in Geneva - Asia Times
• US and China to discuss tariffs in Switzerland amid trade tensions
• Trump proposes 80% China tariff ahead of trade talks
• Trump signals he will cut China tariffs
• Stocks Rise as Trump Says ‘Buy’ Before China Talks: Markets Wrap
• China’s exports to US slump 21% in April but soar to South-East Asia in rush to beat tariffs
• The U.S. and China are set for icebreaker trade talks. Here's what to expect
• First Chinese goods hit with Trump's 145%-plus tariffs arriving at U.S. ports