US and China Open Crucial Trade Talks as Tariff War Escalates
Geneva, Switzerland – May 7, 2025 — The United States and China have officially launched high-level negotiations this week in a bid to cool down a rapidly intensifying trade war between the world’s two biggest economies.
China’s Vice Premier He Lifeng is leading Beijing’s delegation at the summit, which is being held from May 9 to 12 in Switzerland. Representing the U.S. are Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
The talks mark the first direct engagement between Washington and Beijing since Vice President Han Zheng attended President Donald Trump’s inauguration in January.
President Trump’s administration recently slapped tariffs as high as 145% on various Chinese imports. In retaliation, China has imposed duties reaching 125% on select American goods. These aggressive moves have rattled global markets and disrupted supply chains worldwide.
Speaking to Fox News, Secretary Bessent emphasized the need to rebalance global trade dynamics:
“This round is more about de-escalating tensions than sealing a big deal,” he said. “We must reduce friction before building toward long-term solutions.”
China’s Ministry of Commerce echoed a similar sentiment but insisted that the U.S. must recognize the global damage caused by its unilateral trade actions. Chinese state media stated that the decision to engage in dialogue was based on global expectations, domestic economic priorities, and concerns raised by U.S. businesses.
However, experts remain skeptical about any breakthrough during this initial phase.
“We shouldn’t expect fireworks,” said Deborah Elms, Head of Trade Policy at the Hinrich Foundation. “It’s a starting point, not a silver bullet.”
Henry Gao, a law professor at Singapore Management University, added, “These negotiations could easily stretch into next year.”
Despite the uncertainty, the announcement spurred gains in both Chinese and U.S. financial markets. Mainland China and Hong Kong indexes climbed on hopes of economic stabilization, while U.S. stock futures pointed higher ahead of a key Federal Reserve interest rate decision.
The broader impact of Trump’s tariffs remains a point of contention. While intended to protect American industries, critics argue the measures risk igniting a prolonged global trade downturn.
The talks continue under a cloud of geopolitical tension, but for now, both sides seem ready to step back from the brink — even if only slightly.
