U.S. and China Launch High-Level Trade Talks in Geneva to Ease Historic Tariff Tensions

In an effort to mitigate escalating trade tensions, the United States and China began their first high-level meeting on Saturday in Geneva, Switzerland, since the tariff escalation between the two powers reached historic levels. Tariffs imposed by Washington on Chinese products have reached 145%, while Beijing has responded with an increase of up to 125% in its tariffs.

This confrontation, sparked by the protectionist policy of U.S. President Donald Trump, threatens to fragment the global economy and challenges the international trade rules established by the World Trade Organization (WTO), headquartered in Geneva.

Switzerland, known for its neutrality and mediating role in international conflicts, has taken on the responsibility of facilitating these talks at the request of both parties. Swiss Economy Minister Guy Parmelin emphasized his country’s commitment to “good offices,” not only in armed conflicts but also in trade disputes like this one.

“Switzerland is committed to fostering dialogue, especially at a time when global trade faces significant risks,” Parmelin stated after meeting separately with both delegations, accompanied by Swiss President Karin Keller-Sutter. In a hopeful tone, Keller-Sutter expressed her wish that a spirit of conciliation would inspire the negotiations, making a metaphorical reference to the recent conclave in Rome for the election of Pope Leo XIV.

The WTO described the meeting as a “positive step” toward reducing tensions, stressing that dialogue between the world’s two largest economies is essential to avoid further geopolitical fragmentation and protect global economic growth. However, both delegations have maintained strict confidentiality regarding the agenda, format, and exact location of the meetings, which are expected to continue over the weekend.

Sources close to the preparations indicate that the duration of the talks will depend on the initial atmosphere and the parties’ perception of the feasibility of reaching concrete agreements to serve as a basis for future meetings.

The U.S. delegation is led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while China is represented by Vice Premier He Lifeng. China’s official Xinhua news agency confirmed the start of negotiations in a brief statement without providing further details.

For his part, Trump has hinted at a possible reduction of the 145% tariff to 80%, though he left the final decision to Bessent, suggesting some flexibility in the U.S. stance. China, meanwhile, may be seeking a temporary tariff exemption, similar to the 90-day suspension granted to other countries, as well as a substantial reduction in tariffs.

The origin of this trade war dates back to last month when Trump announced widespread tariffs on nearly all countries, a measure that has generated uncertainty in global markets. Although these tariffs are temporarily suspended for 90 days to allow negotiations, a lack of progress could trigger a new wave of protectionism. Analysts warn that without an agreement, the economies of both countries, as well as global supply chains, would face significant consequences.

The outcome of these talks in Geneva will be crucial not only for the United States and China but also for the stability of global trade. As the delegations work against the clock, the international community watches cautiously, hoping that dialogue will mark the beginning of a de-escalation in this costly trade war.