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Tariffs

US and Chinese Officials to Meet in Geneva Amid Ongoing Trade War

Strategic Insights

— 1 min read

US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng in Geneva on Saturday in an effort to de-escalate the trade war sparked by President Donald Trump's tariff rollout and Beijing's retaliatory measures. The meeting comes after Trump signalled that he could lower tariffs on Chinese imports, with the US Commerce Secretary stating that the president wants to "de-escalate the situation" and work out an agreement with China.

Key Takeaways:

  • The US and China have imposed tariffs on each other, with the US imposing 145% tariffs and China imposing 125% levies on US goods.
  • The cumulative duties on some goods have reached an astonishing 245%, effectively creating a trade embargo between the two largest economies.
  • Trump has suggested lowering tariffs to 80% on Chinese imports, but his press secretary clarified that China would need to make concessions for this to happen.
  • The meeting in Geneva is seen as a positive step towards de-escalation, but China has insisted that the US must lift tariffs first.
  • The trade talks have been complicated by the introduction of a 10% baseline levy on British goods, which appears to remain in place despite Trump's claims of flexibility.
  • Trump's economic advisor, Bill Reinsch, has stated that the relationship between Washington and Beijing is deteriorating, but the meeting in Geneva is seen as a "good sign".

Statistics:

  • 145%: The current tariffs imposed by the US on Chinese goods.
  • 125%: The tariffs imposed by China on US goods.
  • 245%: The cumulative duties on some goods between the US and China.
  • 80%: Trump's suggested tariff rate on Chinese imports.
  • 10%: The baseline levy on British goods.

Sources:

  • AFP webpage, 'A good sign'
  • Fox News, US Commerce Secretary Howard Lutnick interview
  • Center for Strategic and International Studies, Bill Reinsch interview
  • China Europe International Business School, Xu Bin interview
  • World Trade Organization, Ngozi Okonjo-Iweala statement
  • Swiss Presidential Office, Karin Keller-Sutter statement
  • The New York Times, Trump's 5-page trade agreement with Britain

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