U.S. and China wrap first day of high-stakes tariff talks

GENEVA — Talks between U.S. and Chinese delegations over tariffs that have threatened to upend the global economy ended after a day of prolonged negotiations and will resume Sunday, an official told the Associated Press.

There was no immediate indication whether progress was made Saturday during the meeting that lasted more than 10 hours between U.S. Treasury Secretary Scott Bessent, U.S. trade representative Jamieson Greer and a delegation led by Chinese Vice Premier He Lifeng.

The official who spoke to the AP requested anonymity because of the sensitivity of the talks, which could help stabilize world markets roiled by the U.S.-China standoff in the wake of President Trump’s tariffs. The talks have been shrouded in secrecy, and neither side made comments to reporters on the way out.

Several convoys of black vehicles left the residence of the Swiss ambassador to the United Nations in Geneva, which hosted the talks aimed at de-escalating trade tensions between the world’s two biggest economies. Diplomats from both sides also confirmed that the talks took place.

Saturday’s talks were held in the sumptuous 18th century Villa Saladin overlooking Lake Geneva. The former estate was bequeathed to the Swiss state in 1973, according to the Geneva government.

Prospects for a major breakthrough appear dim. But there is hope that the two countries will scale back the massive import taxes — tariffs — they have imposed on each other’s goods, a move that would relieve world financial markets and companies on both sides of the Pacific that depend on U.S.-China trade.

Trump raised U.S. tariffs on China to a combined 145% last month, and China retaliated by hitting U.S. imports with a 125% levy. Tariffs that high essentially amount to the countries boycotting each other’s products, disrupting trade that last year topped $660 billion.

Even before the talks began, Trump suggested Friday that the U.S. could lower its tariffs on China, saying in a social media post that “80% Tariff seems right! Up to Scott.″

Sun Yun, director of the China program at the Stimson Center, noted it will be the first time He and Bessent have talked. She doubts the Geneva meeting will produce any substantive results.

“The best scenario is for the two sides to agree to de-escalate on the ... tariffs at the same time,” she said, adding that even a small reduction would send a positive signal. “It cannot just be words.”

Since returning to the White House in January, Trump has aggressively used tariffs as his favorite economic weapon. He has imposed a 10% tax on imports from almost every country in the world.

But the fight with China has been the most intense. His tariffs on China include a 20% charge, which he says is meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States. The remaining 125% involves a dispute that dates back to Trump’s first term and comes atop tariffs he levied on China back then, which means the total tariffs on some Chinese goods can exceed 145%.

During Trump’s first term, the U.S. alleged that China uses unfair tactics to give itself an edge in advanced technologies such as quantum computing and driverless cars. These include forcing U.S. and other foreign companies to hand over trade secrets in exchange for access to the Chinese market, using government money to subsidize domestic tech firms, and outright theft of sensitive technologies.

Those issues were never fully resolved. After nearly two years of negotiation, the United States and China reached a so-called Phase One agreement in January 2020. The U.S. agreed then not to go ahead with even higher tariffs on China, and Beijing agreed to buy more American products. The tough issues — such as China’s subsidies — were left for future negotiations.

But China didn’t come through with the promised purchases, partly because COVID-19 disrupted global commerce just after the Phase One truce was announced.

The fight over China’s tech policy now resumes.

Trump is also agitated by America’s trade deficit with China, which amounted to $263 billion last year.

Tariffs on Switzerland

In Switzerland on Friday, Bessent and Greer also met with Swiss President Karin Keller-Sutter.

Trump last month suspended plans to impose hefty 31% tariffs on Swiss goods — more than the 20% levies he placed on exports from the European Union. For now, he has reduced those taxes to 10% but could raise them again.

The government in Bern is taking a cautious approach. But it has warned of the impact on crucial Swiss industries such as watches, coffee capsules, cheese and chocolate.

“An increase in trade tensions is not in Switzerland’s interests. Countermeasures against U.S. tariff increases would entail costs for the Swiss economy, in particular by making imports from the USA more expensive,” the government said this month, adding that the executive branch “is therefore not planning to impose any countermeasures at the present time.”

The government said Saturday that Swiss exports to the United States were subject to an additional 10% tariff, and an additional 21% beginning Wednesday.

The United States is Switzerland’s second-biggest trading partner after the EU — the 27-member-country bloc that nearly surrounds the wealthy Alpine country of more than 9 million people. U.S.-Swiss trade in goods and services has quadrupled over the last two decades, the government said.

The Swiss government said it abolished all industrial tariffs at the start of 2024, meaning that 99% of all goods from the United States can be imported into Switzerland duty-free.

Wiseman, Tang and Keaten write for the Associated Press. Wiseman and Tang reported from Washington and Keaten from Geneva.