The United States and China have officially begun trade negotiations in Geneva, Switzerland, marking a potential step toward easing the intense trade war that has gripped the two global powers, Chinese media, CCTV said on Saturday
According to CCTV, Vice Premier He Lifeng is leading China’s delegation, while Treasury Secretary Scott Bessent is representing the U.S.
The talks come against the backdrop of a sharp decline in trade and escalating economic strain on both countries.
Bessent played down expectations earlier in the week, cautioning that no sweeping agreement should be anticipated but emphasising the importance of restarting dialogue.
The current tariffs, a 145% US levy on most Chinese imports and a 125% Chinese counter-tariff, have significantly reduced trade volumes.
However, the White House has in the last few days signalled a possible shift in tone. Just before the delegation departed, U.S. President Donald Trump floated the idea of reducing tariffs on Chinese goods to 80%, while reiterating demands for broader Chinese market access.
“80% Tariff on China seems right! Up to Scott B,” Trump posted on his Truth Social Platform.
The tariffs are already impacting US consumers, with inflation expected to rise. Goldman Sachs warned this week that a key inflation metric could double to 4% by year’s end.
Meanwhile, importers are facing higher costs, and the reduced flow of goods has begun to strain supply chains across industries, from clothing and electronics to baby products and machinery.
The National Retail Federation projects a 20% year-over-year drop in total US imports for the second half of 2025, with Chinese imports expected to plummet by as much as 80%, according to JPMorgan.
These pressures are also rattling China’s economy.
In April, Chinese exports to the US fell to $33bn, a 21% drop from the previous year. The country’s manufacturing sector, hit hard by falling demand, saw its sharpest contraction in over a year, spurring Beijing to consider new economic stimulus measures.
