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.”

He 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!!!”

The U.S. delegation was led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while Vice Premier He Lifeng headed the Chinese team. The talks spanned over two days and marked the first face-to-face meetings between the two nations since the imposition of significant tariffs, 145% by the U.S. on Chinese goods and 125% by China on American products.

“I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” U.S. Treasury Secretary Scott Bessent said.

The backdrop to these negotiations has been a rapidly escalating trade war that has seen both economies suffer. The U.S. economy contracted at an annual rate of 0.3% in the first quarter, as businesses rushed to import goods ahead of tariff hikes.

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

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

Meanwhile, Chinese exporters have reported significant challenges, with companies like Sorbo Technology indicating that half of their products, typically destined for the U.S., are now languishing in warehouses.

The trade conflict intensified last month when President Trump declared a universal baseline tariff on all imports to the United States, dubbing the day “Liberation Day.” Approximately 60 trading partners, including China and the European Union, were subjected to higher rates, which the White House justified as a response to years of unfair trade practices.

In addition to the broad tariffs, the U.S. announced a 25% import tax on all steel and aluminum and a further 25% tariff on all cars and car parts. However, a recent deal with the United Kingdom saw these tariffs reduced to 10% for up to 100,000 UK cars, aligning with the number of vehicles the UK exported to the U.S. last year.

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.”

Chinese Vice Premier of the State Council He Lifeng said that the high-level economic and trade talks between China and the U.S. in Geneva were candid, in-depth, and constructive. Both sides have reached an agreement on establishing a China-U.S. economic and trade consultation mechanism, and will conduct further consultations on issues of mutual concern, China’s CGTN reported.

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.

Chinese 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.