US-China Trade Talks Begin in Geneva! Will A Solution Emerge?
Trade Titans Clash in Geneva: US and China Seek to Cool Tariff War
On May 10, 2025, high-stakes talks kicked off in Geneva between US and Chinese officials, aiming to defuse a trade war threatening to choke the world’s two largest economies.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with China’s Vice Premier He Lifeng, marking the first major dialogue since President Donald Trump escalated tariffs on Chinese goods to 145% last month. China retaliated with 125% levies, effectively halting much of the $660 billion annual trade between the nations.
The talks, shrouded in secrecy, carry faint hopes of a breakthrough but could signal a path to de-escalation. Trump hinted at flexibility, suggesting on Truth Social that an 80% tariff “seems right,” a significant drop from the current rates.
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Sun Yun of the Stimson Center cautioned that while substantive results are unlikely, even a modest tariff reduction would boost global markets and businesses reliant on US-China trade.
The conflict, rooted in Trump’s first-term disputes over China’s tech subsidies and trade imbalances, has intensified. A 2020 “Phase One” deal failed to resolve core issues, with China falling short on promised US purchases.
Trump’s additional 20% tariff aims to curb fentanyl flows, but the broader 125% duties reflect ongoing grievances over alleged unfair practices. As global economies brace for fallout, Switzerland, hosting the talks, navigates its own trade tensions with the US, facing a 10% tariff hike.
While immediate solutions seem distant, these discussions could lay the groundwork for easing a trade embargo imperiling global growth.
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