United States and China held direct trade talks in Geneva on Saturday, with discussions expected to continue on Sunday, according to an official, reported Associated Press. The meetings are part of efforts to ease tensions that have triggered steep tariff hikes and increased economic uncertainty worldwide. US treasury secretary Scott Bessent and trade representative Jamieson Greer met with Chinese vice premier He Lifeng in a closed-door session at Villa Saladin, an 18th-century mansion owned by the Swiss government. Officials from both sides confirmed that talks lasted more than ten hours. No breakthroughs were reported after Saturday’s discussions.
Donald Trump’s administration has raised tariffs on Chinese goods to a combined 145%. In response, China imposed 125% tariffs on US imports. These steep tariffs are causing disruptions in industries that rely on trade between the world’s two largest economies, with companies and consumers already feeling the pinch. Trump has defended the tariffs, saying they’re necessary to address China’s unfair trade practices and reduce the US trade deficit. He also tied a 20% tariff to China’s alleged role in the fentanyl crisis. The US president recently said an 80% tariff “seems right,” leaving final decisions to Bessent. Trade experts remain sceptical about a breakthrough, but even a small agreement to scale back tariffs would be a positive step. Talks in 2020 had produced a partial deal—“Phase one”—which fell apart during the pandemic.
