WASHINGTON is set to host a meeting with top Chinese officials in Switzerland this weekend, marking the first significant talks between the two nations since President Donald Trump initiated a trade war with harsh tariffs on imports. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will be meeting their counterparts in Geneva, in what are set to be the highest-level discussions between the nations in months. The talks come in response to growing concerns in the U.S. about the impact of the tariffs on prices and supplies of consumer goods.
No nation has been more adversely affected by Trump’s trade war than China, which is the world’s leading exporter and second largest economy. Following Trump’s imposition of “Liberation Day” tariffs in April, China retaliated with its own set of tariffs, escalating the trade tensions between the two nations. Since then, tariffs have continued to mount, with U.S. tariffs on China reaching 145% and Chinese tariffs on the U.S. at 125%. American companies have already begun canceling orders from China and delaying expansion plans as a result of the tariff war.
Trump had previously stated that negotiations were underway to lower tariffs, but Beijing denied these claims, stating that Trump must first reduce his tariffs. In preparation for this meeting, Bessent testified to a House committee that although no negotiations have yet taken place, the U.S. will soon announce trade deals with some of its largest trading partners.
The Chinese Ministry of Commerce confirmed the meeting between its vice premier and Bessent in Switzerland, stating that the decision to meet was made after careful consideration of the U.S.’s information, China’s interests, and the needs of U.S. businesses and consumers. The spokesperson added that China will not compromise on its principles or global equity in pursuit of any agreement.
Economists have widely agreed that the costs of the tariffs will be passed along to consumers in the form of higher prices for automobiles, food, housing, and other goods. With the price hikes already taking a toll on U.S. consumers, many of whom are currently experiencing their worst financial situation since the COVID-19 pandemic, the risks of a recession continue to grow. Wendy Cutler, a former U.S. trade official, welcomed the upcoming meeting as an essential opportunity to move forward and address concerns, but cautioned that full resolution would be a lengthy process.
In addition to their talks with Chinese counterparts, Bessent and Greer also plan to meet with Swiss President Karin Keller-Sutter. Despite the trade war, both Greer and Bessent have spoken previously with their respective counterparts, with each recognizing the necessity of improving manufacturing and wages. With these upcoming talks, there is a glimmer of hope for a resolution or easing of the trade tensions between the two nations.
Source: https://time.com/7283363/china-us-trade-talks-tariff-war-trump-economy-liberation-day/
