High-level trade talks between the United States and China have started in Geneva, Switzerland, aimed at easing tensions from the ongoing trade war. These discussions follow the imposition of hefty tariffs by President Donald Trump, which have led to significant trade disruptions between the two countries.
Leading the talks for China is Vice Premier He Lifeng, while the US Treasury Secretary Scott Bessent represents America’s interests. Despite the meeting’s significance, Bessent downplayed expectations for a major breakthrough, emphasizing that the talks are an essential step in the ongoing negotiations.
Currently, the US has imposed tariffs as high as 145% on most Chinese imports, while China has retaliated with 125% tariffs on US goods. As a result, trade between the two nations has dramatically declined. Logistics experts warn that even a significant reduction in tariffs might not fully restore normal trade levels. Economists suggest that reducing tariffs by 50% could be a turning point for resuming more stable business relations.
Earlier this week, President Trump proposed cutting tariffs on Chinese imports by up to 80%, conditioned on China opening its market to US goods. This idea, voiced through a post on Truth Social, highlights the ongoing tension in negotiations.
The tariffs have already begun affecting consumers in the US. Prices for goods have risen due to fewer imports and the higher costs of existing ones. A report from Goldman Sachs predicts that the inflation rate could surge to 4% by the end of 2025, largely due to these tariffs.
The US economy has already shown signs of strain. Recent data indicated a contraction in the gross domestic product (GDP), the first since early 2022, as businesses rushed to import goods before tariffs were fully implemented.
In China, the situation is equally challenging. Chinese exports to the US fell sharply by 21% in April 2025 compared to the previous year, while the country’s manufacturing sector has contracted at the fastest pace in over a year. As a result, China is taking steps to introduce new economic stimulus measures.
The US and China, being the world’s two largest economies, have a significant global impact. The outcome of these talks could have far-reaching consequences for international trade. Additionally, Trump has suggested that the case of jailed Hong Kong media tycoon Jimmy Lai could be raised during the discussions, though CCTV did not confirm whether Lai’s case will be addressed.
The ongoing negotiations between the US and China are crucial not only for the two countries but for the global economy as well.
