GENEVA, May 10 — High-ranking officials from the United States and China convened in Geneva on Saturday, initiating delicate negotiations aimed at easing a deepening trade war that has cast uncertainty over global markets. This meeting, seen as a cautious step forward, brought U.S. Treasury Secretary Scott Bessent face-to-face with Chinese Vice Premier He Lifeng in a diplomatic effort to cool escalating economic hostilities.
The discussion marks a significant moment, given the recent sharp increase in tariffs exchanged between the world’s two largest economies. Both countries have implemented duties exceeding 100% on a wide range of goods, fueling tensions that have unsettled investors and disrupted international supply chains.
While the talks were held behind closed doors in a secure location, observers witnessed members of both delegations leaving the Swiss ambassador’s residence in Cologny—a quiet suburb of Geneva around midday, lending credence to reports of active discussions.
A Carefully Orchestrated Encounter
Earlier in the day, American officials, including Secretary Bessent and U.S. Trade Representative Jamieson Greer, were seen leaving their Geneva hotel dressed sharply with red ties and American flag pins on their lapels. Despite interest from the press, Bessent offered no comments. Meanwhile, the Chinese delegation, staying at a hotel near Lake Geneva, departed in a convoy of dark-tinted vans. Their presence in the city coincided with local runners warming up for a marathon, a stark contrast to the serious matters being discussed behind closed doors.
Although the meeting location was kept confidential for security reasons, the presence of both delegations at the Swiss ambassador’s residence all but confirmed Geneva’s role as host of these critical discussions. Swiss officials, who helped coordinate the talks, were optimistic. Economy Minister Guy Parmelin called the launch of negotiations a “success in itself,” and suggested the talks could extend into Sunday or even Monday.
The Swiss government played a behind-the-scenes role in facilitating the dialogue, using recent diplomatic visits to Washington and Beijing to position Switzerland as a neutral ground for negotiation.
Clashing Objectives and Low Expectations
Washington’s goals remain focused on reducing its sizable trade deficit with China and pressuring Beijing to abandon what it views as an outdated, state-controlled economic strategy. U.S. officials argue that China must open its markets further and become a more active participant in global consumer demand—changes that would likely require sensitive policy shifts within China’s domestic framework.
On the other side, Chinese leaders insist that the U.S. must stop what they see as external meddling. Beijing wants the United States to clearly outline which goods or services it expects China to increase purchases of, while also urging a rollback of the steep tariffs that have been implemented in recent months. Equally important for China is recognition as an equal economic power on the world stage, not merely a competitor to be contained.
Expectations of a breakthrough remain modest. With both sides wary of appearing weak, neither is likely to concede easily. The mutual distrust and nationalistic rhetoric on both sides have contributed to a hardened stance, with both nations publicly claiming the other initiated the discussions. U.S. President Donald Trump, speaking on Friday, floated the idea of replacing the current 145% tariff rate with a more “reasonable” 80%, though he gave no concrete plan for implementation. Meanwhile, China insists its opposition to the current tariffs has not changed, and that any compromise must come with respect and fairness.
There is speculation that China may be pursuing a temporary 90-day reprieve from tariffs—similar to waivers the U.S. has granted to some allied countries during ongoing negotiations. Such a pause, along with the potential for continued dialogue, could be seen as a signal of progress by financial markets, even in the absence of a formal agreement.
Adding a global perspective to the proceedings, the director-general of the World Trade Organization, Ngozi Okonjo-Iweala, is expected to meet with He Lifeng during his Geneva visit. She expressed hope that the negotiations would lead to sustained and constructive dialogue between the two major economies, describing the talks as a welcome step toward de-escalation.
Since assuming office in January, President Trump has dramatically increased tariffs on Chinese goods, citing unfair trading practices and accusing China of failing to address the export of materials used in the manufacturing of fentanyl—a potent synthetic opioid that has exacerbated the U.S. drug crisis. In retaliation, Beijing raised its own tariffs to 125% and firmly rejected what it described as pressure from “imperialists” and foreign bullies.
While the Geneva meeting may not result in immediate resolution, the mere fact that both nations are sitting down for face-to-face talks after months of escalating rhetoric is a sign that diplomacy remains possible. Whether these discussions will evolve into meaningful steps toward reducing tariffs and stabilizing the global economy remains to be seen—but for now, the world is watching closely.