High-stakes Geneva talks begin as US–China trade tensions boil over

Top economic officials from China and the United States commenced high-level trade negotiations in Geneva on May 10, marking the first such talks since the imposition of sweeping tariffs by US President Donald Trump.

The discussions aim to address escalating trade tensions between the world's two largest economies, Caliber.Az reports citing foreign media.

US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are leading the American delegation, while Chinese Vice Premier He Lifeng heads the Chinese side. The meeting follows an announcement earlier this week that Bessent and Greer would travel to Switzerland for discussions with Chinese officials.

The high-level talks come amid efforts to de-escalate tensions that began when Trump imposed tariffs of up to 145 per cent on Chinese imports, which Beijing countered with retaliatory levies of 125 per cent. In a televised interview ahead of the talks, Bessent described the current tariff structure as “unsustainable” and “the equivalent of a trade embargo.”

He emphasized that while a broad trade agreement is not on the table, the immediate priority is to “de-escalate before we move forward.”

Meanwhile, President Trump on May 9 said that a tariff rate of 80 per cent on Chinese goods "seems right". In Switzerland, Bessent and Greer also plan to meet with Swiss President Karin Keller-Sutter. Trump last month suspended plans to slap hefty 31 per cent tariffs on Swiss goods—more than the 20 per cent levies he imposed on exports from the European Union. For now, he has reduced those taxes to 10 per cent but could raise them again. The government in Bern is taking a cautious approach but has warned of the impact on crucial Swiss industries like watches, coffee capsules, cheese, and chocolate.

The Geneva talks are seen as a critical step toward reducing trade tensions and restoring stability to global markets. However, with significant differences remaining between the two sides, the outcome of the discussions remains uncertain.

By Vafa Guliyeva