US and China Set for Crucial Talks on Trade Tensions and Tariffs

Chess pieces with USA and China flags map — USA and China trade war concept. Tade war caused by the 2018 US tariffs on steel and aluminium

Top US officials head to Switzerland for pivotal trade talks with China as tariff war threatens both economies and global markets.

Key Insights

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng in Geneva this weekend for the first high-level trade talks since Trump’s return to office.
The US currently imposes tariffs up to 145% on Chinese imports while China retaliates with tariffs up to 84% on American products, creating economic strain on both sides.
Stock futures rose sharply following the announcement of these meetings, signaling investor optimism about potential trade conflict resolution.
Bessent has characterized the current tariff situation as “unsustainable” and likened high tariffs to an embargo, suggesting the administration may be open to compromise.
The talks come amid rising costs for American businesses and consumers while China’s economy continues to accelerate despite trade pressures.

First Major US-China Trade Meeting Since Trump’s Return

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet with Chinese Vice Premier He Lifeng in Switzerland this weekend, marking the first official trade negotiations between the two economic powers since President Trump resumed office. The high-stakes meeting in Geneva aims to address the escalating tariff war that has disrupted global supply chains and increased costs for businesses and consumers on both sides. The American delegation will also meet with Swiss President Karin Keller-Sutter during their visit, emphasizing the international significance of these discussions in resolving one of the world’s most consequential economic standoffs.

The announcement of these talks has already had positive market effects, with U.S. stock futures rising sharply as investors responded to the potential for de-escalation. The current tariff situation has created significant economic pressure, with American businesses struggling with increased costs and supply chain disruptions. President Trump has publicly stated that China is interested in negotiating, though he’s maintained his stance that the U.S. should dictate terms. Beijing had previously denied talks were underway, insisting that America must first lower tariffs before formal negotiations could begin.

BREAKING: Treasury Secretary Scott Bessent says he will be meeting with Chinese officials in Switzerland to begin trade talks with China.

Bessent went on Fox News to break the news.

"The world has been coming to the U.S. and China has been the missing piece. I was going to be… pic.twitter.com/4SpPTNRayx

— Collin Rugg (@CollinRugg) May 6, 2025

Economic Security and National Interests

Treasury Secretary Bessent has framed the upcoming talks as essential to American economic security, drawing direct connections between trade policy and broader national security concerns. “Economic security is national security,” Bessent stated, highlighting the administration’s view that fair trade relationships are fundamental to American prosperity and global influence. The Treasury Secretary indicated that the current tariff situation between the world’s two largest economies “isn’t sustainable” and compared the extensive tariffs to an embargo, suggesting that the administration recognizes the need for a more balanced approach despite its tough public stance.

This weekend’s meetings come as the Trump administration has already begun negotiating with other trading partners. Bessent previously mentioned ongoing talks with 17 different nations, though China had been notably absent from those discussions until now. Trade Representative Greer has separately emphasized that the administration’s plan is “to fix the American economy, not to encircle China,” suggesting a potential opening for constructive dialogue despite the confrontational rhetoric that has characterized much of the U.S.-China relationship in recent years.

Tariff Impact and Economic Consequences

The trade conflict has reached unprecedented levels, with the U.S. imposing tariffs up to 145% on select Chinese imports while China has retaliated with tariffs reaching 84% on American products. These extreme measures have resulted in American imports from China plunging dramatically, disrupting supply chains that took decades to establish. While President Trump’s tariffs were initially designed to boost U.S. manufacturing, economic indicators suggest they have actually weakened American growth prospects even as China’s economy continues to accelerate despite the trade pressures.

China’s Commerce Ministry confirmed the upcoming meeting after “seriously evaluating U.S. information” and considering “global expectations and interests,” language that suggests Beijing recognizes the international pressure to find resolution. Both Bessent and Greer have had prior interactions with Chinese officials before the current trade conflict escalated, potentially providing some foundation for productive discussions. The outcome of these talks will be closely watched by markets worldwide, as even small signs of progress could significantly impact global economic outlook and investor confidence during this period of heightened uncertainty.