- U.S. and Chinese delegations, led by Treasury Secretary Scott Bessent and Vice Premier He Lifang, held over 10 hours of trade talks in Geneva at the historic Villa Saladin, aiming to de-escalate tensions, with discussions set to continue on Sunday.
- President Trump’s tariffs on China have reached 145%, with China retaliating at 125%, disrupting $660 billion in annual trade, while Switzerland faces a 10% U.S. tariff, set to rise to 21% on Wednesday, impacting its key industries.
- The talks address longstanding U.S. grievances over China’s tech practices, including intellectual property theft, with Trump suggesting a potential tariff reduction to 80%, though experts doubt immediate breakthroughs.
High-stakes trade negotiations between the U.S. and China, aimed at easing tensions that have disrupted global markets, concluded their first day of talks in Geneva on Saturday, with discussions set to continue on Sunday, an official told The Associated Press. The meeting, held at the historic 18th-century Villa Saladin overlooking Lake Geneva, spanned over 10 hours and involved Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifang. The estate, bequeathed to the Swiss state in 1973, served as a discreet venue for the sensitive talks, with convoys of black vehicles observed leaving the residence of the Swiss ambassador to the U.N., signaling the day’s end. No immediate progress was reported, and both delegations refrained from commenting to reporters, reflecting the secretive nature of the discussions.
The U.S.-China trade war has escalated significantly since President Donald Trump raised tariffs on Chinese goods to a combined 145% last month, prompting China to retaliate with a 125% levy on American imports. These steep tariffs have effectively disrupted trade between the world’s two largest economies, which last year exceeded $660 billion. Trump’s aggressive tariff strategy also includes a 20% charge specifically aimed at pressuring Beijing to curb the flow of fentanyl into the U.S., with the remaining 125% tied to longstanding disputes over China’s trade practices. Since taking office in January, Trump has wielded tariffs as a primary economic tool, imposing a 10% tax on imports from nearly every country globally, though the conflict with China remains the most intense. The U.S. trade deficit with China, which stood at $263 billion last year, continues to be a focal point for Trump, who has long criticized Beijing’s economic policies.
At the heart of the dispute are unresolved issues from Trump’s first term, when the U.S. accused China of unfair practices in advanced technology sectors like quantum computing and autonomous vehicles. These allegations include forcing foreign companies to surrender trade secrets for market access, subsidizing domestic tech firms with government funds, and engaging in intellectual property theft. A temporary truce, the Phase One agreement of January 2020, saw the U.S. hold off on further tariff hikes while China committed to purchasing more American goods. However, Beijing fell short of its promises, partly due to the global trade disruptions caused by COVID-19, leaving critical issues like subsidies unresolved. The current talks in Geneva mark the first direct engagement between Bessent and He Lifang, but experts like Sun Yun from the Stimson Center remain skeptical about immediate outcomes. She told AP that even a small, simultaneous reduction in tariffs would signal progress, stating that mere rhetoric won’t suffice.
On Friday, Trump hinted at a potential concession, posting on Truth Social that an 80% tariff “seems right,” delegating the decision to Bessent. This suggestion offers a glimmer of hope for de-escalation, which could provide relief to global financial markets and businesses reliant on U.S.-China trade. The talks’ broader implications extend beyond the two nations, as evidenced by Switzerland’s cautious stance on its own trade relations with the U.S. On Friday, Bessent and U.S. Trade Representative Jamieson Greer met with Swiss President Karin Keller-Sutter to discuss bilateral trade. Trump recently suspended plans for a 31% tariff on Swiss goods, opting instead for a 10% rate, with an additional 21% set to take effect on Wednesday. This is a reduction compared to the 20% tariffs imposed on the European Union, but the Swiss government remains wary of the impact on key industries like watches, coffee capsules, cheese, and chocolate. The government noted that 99% of U.S. goods have been imported duty-free since Switzerland abolished industrial tariffs on January 1 last year, highlighting its commitment to open trade despite the looming threat of heightened tensions.
Switzerland, with a population of over 9 million, relies heavily on the U.S. as its second-largest trading partner after the EU, with bilateral trade in goods and services quadrupling over the past two decades. The government has explicitly stated that retaliatory measures against U.S. tariffs would harm its economy by increasing the cost of American imports, and thus it plans to avoid countermeasures for now. The outcome of the U.S.-China talks could set a precedent for other nations navigating Trump’s tariff policies, making the Geneva negotiations a pivotal moment for global economic stability. As discussions resume on Sunday, the world watches closely for any sign of relief from the trade war’s far-reaching effects.
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