First step towards de-escalation: US and China hold tariff talks

China’s top trade official, He Lifeng, on Saturday, May 10, 2025, met with U.S. Treasury Secretary Scott Bessent in Switzerland, to try to ease tensions in a worsening trade war between the two global economic powers.

The meeting marked the first formal engagement between the countries.

This is since the United States imposed a steep 145% tariff on Chinese goods, to which China responded with a 125% retaliatory tariff on U.S. imports.

According to Chinese state media outlet Xinhua, the talks began on Saturday at a confidential location in Geneva.

The Associated Press reported that a motorcade of black vehicles left the residence of the Swiss ambassador to the United Nations in the upscale suburb of Cologny.

According to media reporters, this suggested that the meeting may have taken place there.

A diplomatic source, who spoke to the AP on condition of anonymity due to the sensitivity of the discussions, said the two sides met for about two hours before heading to a scheduled lunch.

The trade conflict erupted last month after U.S. President Donald Trump announced sweeping tariffs on imports from nearly every country.

Although a 90-day grace period was granted to allow for negotiations, the harsh tariffs on Chinese goods were imposed immediately, prompting China’s retaliatory action.

Experts suggest that China is likely seeking the same 90-day reprieve offered to other countries, along with a reduction in the newly imposed 145% tariff.

Trump hinted at a possible reduction in a post on Truth Social, where he said lowering the tariff to 80% “seems right.”

However, Trump’s press secretary, Karoline Leavitt, made it clear that the U.S. would not lower tariffs unless China made concessions of its own.

Meanwhile, Treasury Secretary Bessent emphasized that the goal of the Swiss meetings is to reduce tensions between the two countries.

Sun Yun, director of the China program at the Stimson Center in Washington, D.C., said the ideal outcome would be a simultaneous scaling back of tariffs from both sides.

Even a modest reduction would be a positive signal to the markets, she noted.

“It cannot just be words,” she said, stressing the importance of tangible results.

Underlying the economic dispute is a growing atmosphere of mistrust.

President Trump has defended the high tariffs by accusing China of unfair trade practices and failing to stop the export of chemicals used in making fentanyl, a powerful and deadly synthetic opioid.

China, for its part, has struck a defiant tone, rejecting what it calls U.S. bullying and interference.

Chinese officials have insisted they will not give in to pressure from what they refer to as “imperialist” powers.

This mutual distrust has led both governments to take a tough stance.

Neither wants to appear weak, which has tempered expectations for any major breakthroughs.

Economic analysts remain cautious, predicting that progress—if any—is likely to be slow and incremental.

Adding to the confusion, each side claims the other requested the meeting.

While Trump said China initiated the discussions, Beijing insists it was the U.S. that asked for the talks.

Despite this disagreement, both have confirmed that China’s stance against U.S. tariffs remains firm.

Swiss Economy Minister Guy Parmelin, who met with both delegations in Geneva on Friday, welcomed the fact that the meeting occurred at all, calling it a step in the right direction.

“If a roadmap can emerge and they decide to continue discussions, that will lower the tensions,” he told reporters.

He also said the talks might extend into Sunday or Monday, depending on how they progress.

In summary, experts say that while the meeting in Switzerland represents a cautious step toward dialogue, the deep mistrust and high political stakes mean that meaningful progress will require more than just symbolic gestures.

Any potential deal will likely depend on reciprocal tariff reductions and real commitments from both sides.

For now, the world watches closely as two of its largest economies try to walk back from the brink of a deepening trade conflict.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook