US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer have started talks with Chinese officials, led by Vice Premier He Lifeng, in Geneva. The goal is to ease a trade dispute between the world’s two largest economies, which could harm global markets.
Diplomats confirmed the talks had begun but did not disclose the location. However, a convoy of black cars was seen entering the residence of the Swiss ambassador to the UN. A diplomatic source speaking anonymously said the two sides met for two hours before going to a pre-arranged lunch.
Hopes for a major breakthrough are low, but both countries may agree to reduce the high tariffs they have imposed on each other’s goods. Last month, US President Donald Trump raised tariffs on Chinese products to 145%, and China retaliated with a 125% levy on American imports.
Before the talks, Trump suggested the US could lower tariffs, posting on social media, “80% Tariff seems right! Up to Scott.”
Sun Yun, a China expert at the Stimson Centre, said this is the first direct meeting between Bessent and He Lifeng, but she doubts it will lead to significant outcomes.
Sun Yun noted “The best scenario is for the two sides to agree to de-escalate on the … tariffs at the same time,” she said, adding even a small reduction would send a positive signal. “It cannot just be words.”
Since Trump’s return to the White House, he has aggressively used tariffs as his favourite economic weapon. For example, almost every country in the world has been hit by a 10% tax on imports.
The trade dispute began in Trump’s first term when the US alleged that China uses unfair methods to gain an advantage in advanced technologies. This included forcing US and foreign companies to share trade secrets, using government funds to support domestic firms, and stealing technology.
In 2020, the two countries signed a “Phase One” agreement, where the US paused further tariff increases, and China agreed to buy more American goods. But China did not fully meet those purchase promises, partly due to the COVID-19 pandemic.
The US trade deficit with China reached €233 billion last year. Trump has used tariffs as a key trade tool, not only against China but also against other countries.
In Switzerland, Bessent and Greer also met Swiss President Karin Keller-Sutter. Trump recently suspended a plan to impose a 31% tariff on Swiss goods, currently maintaining a 10% rate. Switzerland is worried about the impact on its key industries, including watches, coffee capsules, cheese, and chocolate.
The Swiss government said it is not planning to retaliate against US tariffs for now, noting that 99% of American goods can enter Switzerland duty-free following a tariff cut last year.