U.S. and Chinese negotiators meet in Geneva for the first time since 2018 in a bold bid to de-escalate the trade war that reshaped global economics.
At a Glance
- First high-level U.S.–China trade talks since 2018 begin in Geneva
- Trump-era tariffs as high as 145% on Chinese goods remain in place
- Treasury Secretary Scott Bessent calls for de-escalation, not a “big deal”
- Financial markets react positively to signals of thaw
- Experts urge realism: breakthrough unlikely, but necessary first step
Geneva Hosts High-Stakes Talks
U.S. and Chinese officials have convened in Geneva for four days of trade negotiations aimed at repairing relations fractured since the 2018 trade war. Representing the United States are Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. On China’s side stands Vice Premier He Lifeng. According to an NPR report, these are the first formal talks since Chinese Vice President Han Zheng attended President Trump’s second inauguration.
The summit, which runs from May 9–12, seeks to undo some of the economic damage wrought by tit-for-tat tariffs—U.S. duties reached 145% on some Chinese goods, while China retaliated with 125% levies on American imports.
Watch Bloomberg’s live coverage of the Geneva trade summit for expert commentary and market reaction.
Bessent Emphasizes Realism Over Breakthrough
Speaking to reporters, Bessent set expectations low. “My sense is that this will be about de-escalation, not about the big trade deal,” he said, “but we’ve got to de-escalate before we can move forward.” As noted in BBC News, the U.S. delegation views this summit as a reset rather than a resolution.
Bessent also rejected any notion of economic separation from China. In an interview cited by NPR, he said, “We don’t want to decouple. What we want is fair trade,” adding that the current structure of tariffs is “the equivalent of an embargo.”
Markets Signal Hope as Talks Begin
Global markets appeared to welcome the meeting. The Christian Science Monitor reported that U.S. stock futures and Hong Kong indexes both saw gains following the start of negotiations, boosted by China’s latest economic stimulus measures.
Still, experts tempered enthusiasm. Deborah Elms, speaking to the BBC, said, “You have to start somewhere… but it’s unlikely to be the launch event people are hoping to see.” Meanwhile, a Chinese commerce ministry official warned that the U.S. must reckon with “the serious negative impact” of unilateral tariff actions on itself and the global economy.
The Bigger Picture: Global Trade and Soft Power
The trade war has dragged on for years, with both nations suffering economic consequences. Economist Alicia Garcia-Herrero told NPR the two sides “need to move on” from tariffs and find new ways to collaborate. Meanwhile, political scientist Joseph Nye argued in the Monitor that U.S. leadership must integrate soft power—“the ability to affect others by attraction and persuasion”—into its trade and foreign policy.
Whether or not the Geneva summit delivers tangible progress, it reflects a pivotal moment in U.S.–China relations. As the world’s two largest economies step back from the brink, a longer path toward cooperation may just be beginning.
