IRIA News

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High-stakes trade negotiations between the United States and China took place in Geneva, Switzerland, over the weekend of May 10-11, 2025. These were the first direct talks between the two countries since U.S. President Donald Trump imposed sweeping tariffs on Chinese imports.

The meetings, held at a secluded villa in the suburb of Cologny, have been described by President Trump as a “total reset” in bilateral trade relations. In a post on his Truth Social platform, President Trump characterized the initial discussions as “very good,” stating that change had been “negotiated in a friendly, but constructive, manner.”

Trump further emphasized the mutual benefits of the talks, adding, “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”

New negotiation window

The U.S. delegation was led by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. China was represented by Vice Premier He Lifeng. U.S. Treasury Secretary Scott Bessent said, “I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks.”

Both countries issued a joint statement on May 13 confirming a 90-day pause on new tariffs and the establishment of a structured dialogue mechanism.

“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties,” the statement read. Working-level consultations on technical economic issues will also be allowed as part of the process.

BREAKING: U.S. Announces China Trade Deal in Geneva pic.twitter.com/JjgvYAvAGe

— The White House (@WhiteHouse) May 11, 2025

“We got a lot done over two days, so I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement,” Bessent told reporters in an interview from Switzerland.

While the tone was notably cooperative, Bessent emphasized that key issues remain unresolved. “That’s the purpose of the 90-day pause, to see what we can do and work on these non-tariff barriers,” he said, highlighting ongoing challenges faced by U.S. firms operating in China.

Backdrop of tariff fallout

The Geneva talks come amid a climate of economic uncertainty. In April, President Trump imposed a 145% universal tariff on Chinese imports, triggering a 125% retaliatory response from Beijing. The move was framed by the White House as a reset of global trade practices, with Trump labeling the date “Liberation Day.”

The U.S. economy shrank by 0.3% in the first quarter, as businesses rushed to import goods ahead of the hikes. On the Chinese side, exporters like Sorbo Technology have been hit hard, with large volumes of goods stuck in warehouses awaiting new market access routes.

While President Trump floated the idea of adjusting tariffs, suggesting a reduction to 80%, White House Press Secretary Karoline Leavitt made it clear that Washington will not make unilateral concessions. Instead, any tariff relief would be contingent on Chinese structural changes.

China’s response

Chinese state media, including Xinhua, acknowledged that the talks were a necessary step to “resolve disagreements and avert further escalation.” Although critical of U.S. tariff policy, the commentary emphasized the “constructive” atmosphere in Geneva.

CGTN reported that both sides agreed to establish a China-U.S. consultation mechanism to manage ongoing trade discussions. Chinese Vice Premier He Lifeng described the weekend talks as “candid, in-depth, and constructive.”

He is also scheduled to meet with World Trade Organization Director-General Ngozi Okonjo-Iweala in the coming days, signaling China’s intent to complement bilateral talks with multilateral engagement.

Broader agenda

Despite the positive tone from President Trump, White House Press Secretary Karoline Leavitt clarified that Washington would not unilaterally lower tariffs, emphasizing that China would need to make its concessions. Both nations have issued warnings ahead of the Geneva meetings, with Beijing insisting on tariff reductions and the U.S. focusing on de-escalation rather than a comprehensive trade deal.

Chinese state media reported that Beijing’s decision to engage in talks was influenced by global expectations, national interests, and appeals from American businesses. A commentary from China’s official Xinhua News Agency criticized the U.S.’s “reckless abuse of tariffs” for destabilizing the global economic order but acknowledged that the negotiations were “a positive and necessary step to resolve disagreements and avert further escalation.”

White House economic advisor Kevin Hassett echoed the sentiment of progress, stating that the Chinese were “very, very eager” to engage in discussions and rebalance trade relations. He also hinted at the possibility of more foreign trade deals being announced soon, noting that Commerce Secretary Howard Lutnick had briefed him on two dozen pending agreements in development with Trade Representative Greer.

The choice of Geneva as the meeting location reflects Switzerland’s neutral stance and its diplomatic engagements with both nations. The secluded villa, offering privacy and security, provided an ideal setting for the sensitive discussions.

As talks continue, both sides remain cautious. President Trump suggested an 80% tariff on Chinese goods as a potential alternative to the current 145% levies, indicating a willingness to adjust but not eliminate the tariffs. China, on the other hand, may seek a 90-day waiver on tariffs like those granted to other countries during negotiations.

Vice Premier He is also scheduled to meet with World Trade Organization Director-General Ngozi Okonjo-Iweala later, following the meeting, signaling China’s intent to engage with international institutions amid the bilateral tensions.

The outcome of these talks remains uncertain. While initial statements suggest a willingness to find common ground, the deep-seated issues and mutual distrust present significant challenges. Both nations have much at stake, and the global economy watches closely as the world’s two largest economies attempt to navigate their complex trade relationship.