United States and China will sit down in Switzerland this week for their first face‑to‑face trade talks since their tariff war began, signalling a possible pause in tensions between the world’s two largest economies.US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are leading the US delegation, while Chinese Vice Premier He Lifeng will speak for Beijing. Swiss diplomats will host the closed door sessions at Lake Geneva.The meeting comes after President Donald Trump imposed a 145% tariff on Chinese imports in March, a move that triggered Beijing’s 125% counter tariff and froze almost all bilateral trade. Both sides have since barred many goods, creating what analysts describe as a “de facto embargo.”.Businesses on both sides of the Pacific have pleaded for relief. The International Monetary Fund last month trimmed its 2025 global growth outlook to 2.8% from 3.3%, warning that a drawn‑out dispute could cost the world economy hundreds of billions of dollars. JP Morgan now puts the odds of a US recession this year at 60%.The economic pain has already begun. US gross domestic product slipped 0.3% in the first quarter, before most of the new tariffs even took effect. .Factory orders and shipping volumes have also weakened, according to recent government data.Speaking on Fox News after the talks were announced, Bessent said Washington wants stability, not separation.“We don’t want to decouple. What we want is fair trade,” Bessent told host Laura Ingraham, adding that the goal of the Switzerland meeting is “de‑escalation, not a big trade deal.”Chinese officials are cautious to say where the talks may lead. In Beijing, a Commerce Ministry spokesperson said any negotiations must be built on “mutual respect, equality, and benefit.”.“If the US wishes to resolve issues through negotiation, it must acknowledge the severe negative impacts its unilateral tariff measures have had on itself and the world,” said the spokesperson. “Listen to their words, and observe their actions.”Even a modest thaw between the two superpowers could cheer investors, who have watched supply chains stretch and prices rise since the tit‑for‑tat duties began. If the two superpowers can agree to freeze new tariffs, it would be seen as progress.
