U.S.-China Tariff Talks Pause, Will Resume Sunday

U.S.-China Tariff Talks Pause, Will Resume Sunday \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ High-stakes U.S.-China trade negotiations ended Saturday with no immediate breakthrough and will resume Sunday. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met for 10 hours in Geneva amid escalating tariff threats. The talks could shape global markets shaken by record-high levies.

Quick Looks

• U.S. and Chinese officials met Saturday for over 10 hours in Geneva, concluding without a public statement.
• Talks will resume Sunday, with both sides tight-lipped about progress.
• The negotiations aim to de-escalate trade tensions following crippling tariff hikes by both countries.
• President Trump raised U.S. tariffs to 145%, and China retaliated with 125% tariffs on U.S. imports.
• The talks took place at the historic Villa Saladin, hosted by the Swiss ambassador to the U.N..
• Swiss President Karin Keller-Sutter also met with Treasury Secretary Scott Bessent during the summit.
• Analysts doubt a major breakthrough but say even a small rollback of tariffs could stabilize markets.
• Trump hinted Friday that he may lower tariffs slightly, posting, “80% seems right! Up to Scott.”
• Tariffs were originally imposed due to disputes over fentanyl trafficking and tech policy violations.
• Switzerland, caught in the crossfire, is facing U.S. tariffs on key exports, but has declined to retaliate.

Deep Look

Efforts to defuse a deepening U.S.-China trade war continued behind closed doors Saturday in Geneva, as delegations led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met for more than 10 hours with no public resolution. According to a U.S. official speaking anonymously to the Associated Press, negotiations will resume Sunday as both sides assess the path forward amid soaring tariffs that threaten global economic stability.

A Fragile Setting for Critical Talks

The negotiations were held at the Villa Saladin, an 18th-century lakeside estate gifted to the Swiss government in 1973. The secluded venue reflects the sensitivity and secrecy of the talks — neither side offered comments as convoys of black vehicles departed the Swiss ambassador’s residence.

This is the first in-person meeting between Bessent and He, signaling a potential thaw after months of rising tensions. Yet few observers expect a breakthrough, given the magnitude of economic disagreements and political posturing surrounding the discussions.

Tariffs Reach Record Levels

President Donald Trump last month increased U.S. tariffs on Chinese goods to 145%, including a 20% penalty tied to China’s failure to stop fentanyl exports. China responded with 125% levies on U.S. imports, creating a near-total collapse in bilateral trade, which had exceeded $660 billion just last year.

The resulting uncertainty has spooked investors and disrupted supply chains from Silicon Valley to Shanghai. Tariffs this high functionally act as mutual boycotts, with both governments weaponizing trade to achieve political and security goals.

On Truth Social, Trump hinted at potential flexibility, writing that “80% Tariff seems right! Up to Scott.” Though not a formal policy statement, it signals internal deliberations on possibly moderating the U.S. position.

Lingering Tech and Trade Grievances

At the heart of the dispute are longstanding U.S. complaints over China’s economic practices, especially in tech sectors. During Trump’s first term, Washington accused Beijing of:

• Forcing U.S. firms to surrender trade secrets in exchange for market access.
• Massive state subsidies for domestic companies in AI, quantum computing, and autonomous vehicles.
• Cyber theft of proprietary technologies and data.

These concerns led to the Phase One trade agreement in 2020, in which China pledged to buy more U.S. goods and the U.S. agreed to hold off on new tariffs. But COVID-19 derailed implementation, and Beijing failed to meet purchase targets, reigniting tensions under Trump’s second term.

Switzerland Caught in the Middle

The Geneva meeting also included a bilateral conversation between U.S. officials and Swiss President Karin Keller-Sutter, as Switzerland navigates its own tariff tensions with the United States. Trump recently reduced tariffs on Swiss goods to 10%, down from a threatened 31%, but warned they could be raised again.

The Swiss government responded cautiously, saying it would not impose countermeasures for now but warned of impacts on key sectors like watchmaking, cheese, coffee capsules, and chocolate. Switzerland abolished nearly all industrial tariffs in 2023, meaning 99% of U.S. goods enter duty-free.

Still, the U.S. is Switzerland’s second-largest trading partner, and the Alpine nation is anxious to avoid becoming collateral damage in the escalating trade crossfire.

“An increase in trade tensions is not in Switzerland’s interests,” the Swiss government stated last week. “Countermeasures… would entail costs for the Swiss economy.”

The Stakes Moving Forward

With Sunday’s talks on the horizon, expectations remain low — but even a modest agreement to pause further tariff hikes could calm global markets. Analysts warn, however, that both sides remain entrenched, particularly with Trump using tariffs as a cornerstone of his second-term agenda.

Any agreement would likely require mutual concessions and possibly a roadmap back to broader Phase Two negotiations on industrial subsidies and IP protections.

Until then, businesses and investors are bracing for continued volatility, as the world’s two largest economies test the limits of trade as a tool of diplomacy and coercion.

More on US News