Table of Contents
US and China Set to Meet in Switzerland Amid Escalating Trade War
High-Level Talks Scheduled
U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet with China’s top economic official in Switzerland on Saturday, U.S. officials confirmed. The meeting, to be held in Geneva, may mark the first significant step toward resolving a trade conflict that has disrupted global markets and supply chains.
Greer and Bessent will also meet with Swiss President Karin Keller-Sutter to discuss bilateral trade, according to statements from the U.S. Treasury and the Office of the U.S. Trade Representative.
Markets React Positively
News of the planned meeting sent U.S. equity futures higher. S&P 500 emini futures rose approximately 1% in after-hours trading, recovering from two consecutive days of losses fueled by uncertainty surrounding President Donald Trump’s aggressive trade policies.
“My sense is this will be about de-escalation,” Bessent said during an interview with Fox News. “We’ve got to de-escalate before we can move forward.”
China Confirms Re-engagement
Although the U.S. has not specified which Chinese official will attend, China’s Vice Premier He Lifeng, the country’s top economic planner, is widely expected to lead Beijing’s delegation.
China’s Ministry of Commerce confirmed its participation, stating that the decision was made “on the basis of fully considering global expectations, China’s interests, and the appeals of U.S. industry and consumers.”
A ministry spokesperson added a cautionary note: “There is an old Chinese saying: Listen to what is said, and watch what is done. If the U.S. says one thing but does another, or uses talks as a cover to continue coercion and blackmail, China will never agree.”
Mixed Messages from Washington
While some signals suggest a thaw in relations, the U.S. administration has remained noncommittal. The meeting has not been officially described as the beginning of formal negotiations.
Earlier on Tuesday, Bessent told lawmakers that the Trump administration was in talks with 17 major trading partners, but not yet with China. He hinted that trade agreements with some of those countries could be announced soon.
President Trump echoed this cautious approach, stating he and top officials would review potential trade deals over the coming weeks. His remarks, made before a meeting with Canadian Prime Minister Mark Carney, caused another dip in U.S. stocks.
Escalating Tariffs and Trade War
Since April 2, Trump has enacted a 10% tariff on most countries, with more punitive tariffs on others—including:
- 25% on autos, steel, and aluminum
- 25% on Canada and Mexico
- 145% on China
China retaliated with up to 125% tariffs on U.S. goods, while offering limited exemptions. The European Union has also warned of countermeasures and is exploring closer trade relations with other nations.
Bessent described the tariff exchange with China as unsustainable, calling it “an effective trade embargo between the world’s two largest economies.”
Growing Economic Impact
Despite the tariffs, the U.S. trade deficit reached a record high in March. According to the Commerce Department, many businesses accelerated imports ahead of tariff deadlines, especially pharmaceutical firms. This surge contributed to the first quarterly contraction in U.S. GDP in three years.
Interestingly, the trade deficit with China shrank due to the high tariffs imposed on Chinese goods, suggesting a selective impact of the policy.
Outlook
“I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the United States,” Bessent stated.
However, with both sides locked in a pattern of retaliation and mutual suspicion, the upcoming meeting in Geneva is seen more as a test of intent than a breakthrough moment.
“US and China Set to Meet in Switzerland Amid Escalating Trade War” “US and China Set to Meet in Switzerland Amid Escalating Trade War” “US and China Set to Meet in Switzerland Amid Escalating Trade War” “US and China Set to Meet in Switzerland Amid Escalating Trade War” “US and China Set to Meet in Switzerland Amid Escalating Trade War”