US, China Wrap Up First Day of Geneva Talks Post-Trump Tariffs

GENEVA: The United States and China concluded the first day of crucial trade negotiations in Geneva on Saturday. This was their first direct encounter since President Donald Trump imposed a new set of significant tariffs on Chinese imports.

The private meetings took place at the residence of the Swiss ambassador and reflect both nations’ tentative willingness to ease one of the most intense trade disputes seen in recent years.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng at the ambassador’s residence, which Chinese state media described as an “important step” toward reducing tensions.

According to a source familiar with the talks, discussions are set to continue on Sunday.

Currently, Trump’s tariffs on Chinese goods average 145%, with some items facing as high as 245%. China has retaliated with tariffs of 125% on American products, putting both nations on the brink of a near-total trade halt.

On Friday, Trump suggested online that an “80% Tariff on China seems right!” However, his press secretary, Karoline Leavitt, later clarified that any potential reduction would hinge on concessions from China, indicating that both parties must contribute to any resolution.

Commerce Secretary Howard Lutnick stated that Trump is willing to ease tensions but emphasized that any tariff reductions would not come without reciprocal actions from China. “The president is interested in finding a resolution with China,” he noted.

‘The relationship is not good’

According to Bill Reinsch from the Center for Strategic and International Studies, “The relationship is not good. We are facing trade-restrictive tariffs in both directions.”

Nonetheless, analysts view the meeting as a positive indication.

Xu Bin, a professor at the China Europe International Business School, pointed out that the mere fact that the two sides are engaging in dialogue is significant. “China is the only nation that has responded in kind to Trump’s tariffs,” he mentioned.

Bessent clarified that discussions would prioritize “de-escalation” rather than seeking a comprehensive trade agreement.

In contrast, China is pushing for the U.S. to lift tariffs before making significant moves. A commentary from China’s Xinhua news agency cautioned that “trade wars and tariff conflicts yield no winners,” underscoring that both nations are facing economic repercussions.

UK deal provides some optimism

Just two days before the Geneva meetings, Trump finalized a separate agreement with the UK—his first trade pact since initiating global tariffs. This five-page deal offers specific concessions on British steel, aluminum, and automotive products in exchange for increased UK access to U.S. beef and agricultural goods.

A baseline tariff of 10% remains on most UK imports, though Trump hinted that it could be waived “if someone did something exceptional for us.”

Meanwhile, China’s latest export statistics revealed an unexpected rise, aided by a shift in trade towards Southeast Asian markets—potentially a sign that Beijing is seeking alternatives to circumvent U.S. tariffs.

While it’s still early days, the Geneva discussions could signal the beginning of a thaw in relations. For now, both sides are exercising caution while navigating these complex negotiations.