U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with a Chinese delegation led by Vice Premier He Lifeng in Switzerland this weekend. The goal of these meetings is to ease the ongoing trade tensions between the two nations. Secretary Bessent acknowledged that the current tariff rates, which the U.S. and China have imposed on each other, are unsustainable.
He hinted at a possible 90-day pause on tariffs while negotiations continue. “My sense is that this will be about de-escalation, not about the big trade deal…but we’ve got to de-escalate before we can move forward,” stated Bessent. He emphasized that while a formal trade agreement may not be expected from these discussions, reducing retaliatory tariffs is a priority.
Speaking before the House Financial Services Committee, Bessent described the talks with global trading partners as “quite advanced” and projected agreements in principle “in the coming months.”
Bessent also noted President Trump’s strategy of using “strategic uncertainty” to secure favorable trade deals. “The world has been coming to the U.S. for deals, and China has been the missing piece,” said Bessent.
Trade talks in Switzerland
“We don’t want to decouple; what we want is fair trade.”
The upcoming discussions in Geneva are seen as a critical step toward easing the trade war and improving economic and commercial relations between the U.S. and China. As both nations descend from their lofty tariff heights, the discussions in Geneva could redefine trade practices and economic relationships worldwide. Switzerland always envisioned itself as a pivotal location for global trade resolutions.
It was in Geneva in 1947 that 23 countries signed the General Agreement on Tariffs and Trade (GATT), instituting decades of tariff negotiations. Geneva also houses the World Trade Organization (WTO), founded with optimistic aspirations in 1995. However, Switzerland’s position in global trade has been jeopardized by President Donald Trump’s disdain for the WTO and his penchant for tariffs.
Yet, Geneva once again plays host to high-stakes trade talks between the world’s two largest economies. The global trading system’s fate rests once more in neutral Switzerland, as America and China navigate their complex economic relationship in these critical alpine negotiations.
