The American secretary of the Treasury, Scott Bessent and the commercial representative, Jamieson Greer, began talks with Chinese officials, led by Deputy Prime Minister He Lifeng, in Geneva. The objective is to relieve a commercial dispute between the two largest economies in the world, which could affect global markets.
The diplomats confirmed that the talks had started but had not disclosed the location. However, a convoy of black cars was seen entering the residence of the Swiss ambassador to the UN. A diplomatic source speaking anonymously said that the two parties met for two hours before going to a pre-arranged lunch.
The hopes of a major breakthrough are low, but the two countries can agree to reduce the high prices they have imposed on the goods of the other. Last month, US President Donald Trump increased rates on Chinese products to 145%, and China retaliated with a 125% levy on American imports.
Before the talks, Trump suggested that the United States could reduce prices, displaying on social networks, “the 80% price seems right!
Sun Yun, an expert in China at the Stimson Center, said that it was the first direct meeting between Bessente and Li Lifeng, but she will doubt that this will lead to important results.
Sun Yun noted: “The best scenario is that the two parties agree to defuse … Prices at the same time,” she said, adding that even a small reduction would send a positive signal. “It cannot be words.”
Since Trump's return to the White House, he has aggressively used prices like his favorite economic weapon. For example, almost all countries of the world have been affected by a 10% tax on imports.
The commercial dispute began during Trump's first term when the United States alleged that China uses unjust methods to obtain an advantage in advanced technologies. This included forcing American and foreign companies to share trade secrets, to use public funds to support national businesses and theft of technology.
In 2020, the two countries signed a “phase one” agreement, where the United States has interrupted new rate increases, and China agreed to buy more American goods. But China has not fully respected these promises to purchase, partly because of the COVVI-19 pandemic.
The American trade deficit with China reached 233 billion euros last year. Trump used prices as a key commercial tool, not only against China but also against other countries.
In Switzerland, Bessent and Greer also met Swiss President Karin Keller-Sutter. Trump recently suspended a plan to impose a 31% rate on Swiss goods, now a rate of 10%. Switzerland is concerned about the impact on its key industries, including watches, coffee capsules, cheese and chocolate.
The Swiss government said that it was not planning to retaliate against the American prices for the moment, noting that 99% of American goods can enter Switzerland in the franchise of rights following a price drop last year.
