Geneva: Sensitive talks between US and Chinese delegations over tariffs that threaten to upend the global economy ended after a day of prolonged negotiations and will resume Sunday, an official told The Associated Press.
Hours after the talks concluded, US President Donald Trump posted on social media that a reset on trade between both countries was being discussed.
“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner,” Trump wrote. “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”
The meeting lasted over 10 hours and featured Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and a delegation led by Chinese Vice Premier He Lifeng.
The official who spoke to the AP requested anonymity because of the sensitivity of the talks, which could help stabilise world markets roiled by the US-China standoff. The talks have been shrouded in secrecy, and neither side made comments to reporters on the way out.
Several convoys of black vehicles left the residence of the Swiss ambassador to the UN in Geneva, which hosted the talks aimed at de-escalating trade tensions between the world’s two biggest economies. Diplomats from both sides also confirmed that the talks took place.
Saturday’s talks were held in the sumptuous 18th-century “Villa Saladin” overlooking Lake Geneva. The former estate was bequeathed to the Swiss state in 1973, according to the Geneva government.
Prospects for major breakthrough appear dim
Prospects for a major breakthrough appear dim. But there is hope that the two countries will scale back the massive taxes — tariffs — they have slapped on each other’s goods, a move that would relieve world financial markets and companies on both sides of the Pacific Ocean that depend on US-China trade.
Trump last month raised US tariffs on China to a combined 145 per cent, and China retaliated by hitting American imports with a 125 per cent levy. Tariffs that high essentially amount to the countries’ boycotting each other’s products, disrupting trade that last year topped USD 660 billion.
Even before the talks began, Trump suggested Friday that the US could lower its tariffs on China, saying in a Truth Social post that “80% Tariff seems right! Up to Scott.?
Sun Yun, director of the China program at the Stimson Center, noted it will be the first time He and Bessent have talked. She doubts the Geneva meeting will produce any substantive results.
“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 returning to the White House in January, Trump has aggressively used tariffs as his favourite economic weapon. He has, for example, imposed a 10 per cent tax on imports from almost every country in the world.
But the fight with China has been the most intense. His tariffs on China include a 20 per cent charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States. The remaining 125 per cent involve a dispute that dates back to Trump’s first term and comes atop tariffs he levied on China back then, which means the total tariffs on some Chinese goods can exceed 145 per cent.
US alleged that China uses unfair tactics
During Trump’s first term, the US alleged that China uses unfair tactics to give itself an edge in advanced technologies such as quantum computing and driverless cars. These include forcing US and other foreign companies to hand over trade secrets in exchange for access to the Chinese market; using government money to subsidise domestic tech firms; and outright theft of sensitive technologies.
Those issues were never fully resolved. After nearly two years of negotiation, the United States and China reached a so-called Phase One agreement in January 2020. The US agreed then not to go ahead with even higher tariffs on China, and Beijing agreed to buy more American products. The tough issues — such as China’s subsidies — were left for future negotiations.
But China didn’t come through with the promised purchases, partly because COVID-19 disrupted global commerce just after the Phase One truce was announced.
The fight over China’s tech policy now resumes.
Trump is also agitated by America’s massive trade deficit with China, which came to USD 263 billion last year.
Trump slaps hefty tariffs on Switzerland
In Switzerland Friday, Bessent and Greer also met with Swiss President Karin Keller-Sutter.
Trump last month suspended plans to slap hefty 31 per cent tariffs on Swiss goods — more than the 20 per cent levies he plastered on exports from European Union. For now, he has reduced those taxes to 10 per cent but could raise them again.
The government in Bern is taking a cautious approach. But it has warned of the impact on crucial Swiss industries like watches, coffee capsules, cheese and chocolate.
“An increase in trade tensions is not in Switzerland’s interests. Countermeasures against US tariff increases would entail costs for the Swiss economy, in particular by making imports from the USA more expensive,” the government said last week, adding that the executive branch “is therefore not planning to impose any countermeasures at the present time”.
The government said Swiss exports to the United States on Saturday were subject to an additional 10 per cent tariff, and another 21 per cent beginning Wednesday.
