Credit: Reuters File Photo
Top economic officials from the United States and China concluded their first day of meetings in Geneva on Saturday evening, setting up a second day of high-stakes negotiations Sunday that could determine the fate of a global economy that has been jolted by President Donald Trump’s trade war.
Neither side provided an immediate formal readout about how the talks went. Trump, writing on social media on Saturday evening, described the meeting as “very good” in a “friendly, but constructive, manner.”
“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!”
The meetings are the first since Trump ratcheted up tariffs on Chinese imports to 145 per cent and China retaliated with its own levies of 125 per cent on US goods. The tit-for-tat effectively cut off trade between the world’s largest economies while raising the possibility of a global economic downturn.
The stakes for the meetings are high, but expectations for a breakthrough that results in a meaningful reduction in tariffs are low. It has taken weeks for China and the United States to even agree to talk, and many analysts expect this weekend’s discussions to revolve around determining what each side wants and how negotiations could move forward.
Still, the fact that Beijing and Washington are finally talking has raised hopes that the tension between them could be defused and that the tariffs could ultimately be lowered. The impact of the levies is already rippling across the global economy, reorienting supply chains and causing businesses to pass additional costs on to consumers.
The negotiations will be watched closely by economists and investors, who fear that a U.S.-Chinese economic war will lead to slower growth and higher prices around the world. Businesses, particularly those that rely on Chinese imports, are also on high alert about the talks as they grapple with how to cope with the new taxes and the uncertainty about whether they will remain in place.
The Trump administration’s negotiators are being led by Treasury Secretary Scott Bessent, a former hedge fund manager who has said the current tariff levels are unsustainable. He Lifeng, China’s vice premier for economic policy, is leading the talks on behalf of Beijing.