Trade war talks in Switzerland kick off
GENEVA — U.S. and Chinese officials began their trade war talks in Switzerland on Saturday, aiming to ease tensions that threaten the global economy. The negotiations will continue on Sunday, according to a source close to the discussions.
Chinese Vice Premier He Lifeng met for about eight hours with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer in Geneva. This was their first face-to-face meeting since both countries imposed tariffs exceeding 100% on each other’s goods.
Neither side revealed details or progress after the talks ended around 8 p.m. local time at the residence of Switzerland’s ambassador to the U.N.
Trade war talks in Switzerland: background and location
The talks came after weeks of rising tensions triggered by U.S. President Donald Trump’s tariff increases starting in February. China retaliated, bringing nearly $600 billion in bilateral trade to a near halt.
This trade dispute, combined with Trump’s recent tariffs on other countries, has disrupted supply chains, unsettled markets, and raised fears of a global economic slowdown.
The exact meeting place was kept secret, but witnesses saw both delegations returning to a gated villa overlooking Lake Geneva in the quiet suburb of Cologny.
U.S. officials left their hotel smiling, wearing red ties and American flag pins. Meanwhile, Mercedes vans with tinted windows transported the Chinese delegation from their lakeside hotel as local runners warmed up nearby.
Trade war talks in Switzerland: key issues at stake
Washington wants to reduce its $295 billion trade deficit with China and push for reforms that would shift China toward more global consumption. However, China resists what it sees as outside interference, demanding tariff cuts, clear U.S. requests on purchases, and equal treatment on the world stage.
China’s official news agency criticized U.S. tariff policies as reckless but acknowledged the talks as a positive step to avoid further escalation. It emphasized China’s unwavering stance to protect its development interests and maintain global trade order.
Low expectations and future prospects
Distrust runs high, and many analysts doubt a quick breakthrough. President Trump recently suggested an 80% tariff might be acceptable, down from the current 145% on Chinese goods. Both sides claim the other initiated the talks, but China insists its opposition to tariffs remains firm.
China may seek a 90-day tariff waiver like other countries have received during negotiations. Any tariff reduction or agreement to continue talks would be welcomed by investors.
Swiss Economy Minister Guy Parmelin, who helped broker the meeting, called the talks themselves a success and said ongoing discussions could lower tensions. Talks might extend into Sunday or Monday.
International support and expectations
The World Trade Organization’s director-general is expected to meet with Chinese Vice Premier He during his stay. She praised the talks as a constructive step toward de-escalation and urged sustained dialogue between the two largest economies.
Since January, the U.S. has raised tariffs on Chinese goods to 145%, citing unfair trade practices and concerns about fentanyl exports. China responded with retaliatory tariffs of 125%, vowing not to yield to pressure.
Despite tough rhetoric, these trade war talks in Switzerland signal a cautious attempt to find common ground and prevent further harm to the global economy.