GENEVA: The United States and China wrapped up the first day of high-stakes trade talks in Geneva on Saturday, their first face-to-face meeting since President Donald Trump imposed a fresh wave of steep tariffs on Chinese imports.
The closed-door discussions, held at the Swiss ambassador’s residence, come as both sides signal a cautious willingness to de-escalate one of the most severe trade stand-offs in recent years.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng on Saturday at the Swiss ambassador’s residence. The discreet villa on Lake Geneva was the setting for what Chinese state media described as an “important step” towards easing tensions.
Talks will continue on Sunday, according to a source close to the discussions.
Trump’s tariffs now total 145% on Chinese imports, with some products facing a staggering 245% duty. Beijing hit back with 125% tariffs on US goods, pushing both countries to the brink of a near-total trade freeze.
On Friday, Trump hinted he might lower tariffs, posting online that an “80% Tariff on China seems right!” But his press secretary, Karoline Leavitt, later said any reduction would depend on Chinese concessions. The message was clear: it takes two to tango.
Commerce Secretary Howard Lutnick said Trump was open to de-escalation, but the tariffs wouldn’t come down for free. “The president would like to work it out with China,” he said. “He would like to de-escalate the situation.”
‘The relationship is not good’
“The relationship is not good,” said Bill Reinsch of the Center for Strategic and International Studies. “We have trade-prohibitive tariffs going in both directions.”
Still, analysts saw the meeting as a positive signal.
Xu Bin, a professor at the China Europe International Business School, said the fact the two sides were talking at all was significant. “China is the only country that has hit back in kind to Trump’s tariffs,” he said.
Bessent made it clear that the talks would focus on “de-escalation”, not a sweeping trade deal.
China, meanwhile, wants the US to lift tariffs before making any big moves. A commentary in China’s Xinhua news agency warned that “trade wars and tariff battles yield no winners” – a reminder that both sides are bleeding.
UK deal offers glimmer of hope
Trump struck a separate deal with Britain two days before the Geneva meeting – his first trade pact since launching global tariffs. The five-page agreement offers sector-specific relief on British steel, aluminium, and cars, in exchange for greater UK access for US beef and farm goods.
A 10% baseline tariff remains on most UK imports, though Trump suggested it could be waived “if somebody did something exceptional for us”.
Meanwhile, China’s latest export figures unexpectedly rose, helped by a shift in trade to Southeast Asia – a possible sign Beijing is finding ways around US duties.
It’s early days, but the Geneva talks may mark the beginning of a thaw. For now, both sides are keeping their cards close to their chest – and hoping not to shoot themselves in the foot.
