US-China: Engaging in Talks to De-escalate the Trade War

The US and China are engaging in talks aimed at de-escalating the trade war initiated by former President Donald Trump. The impact of this ongoing conflict is increasingly being felt by the world’s two largest economies. Today (May 10, 2025) and tomorrow (May 11, 2025), negotiations will take place in Geneva, involving U.S. Treasury Secretary Scott Besed, lead trade negotiator James Grier, and Chinese Vice Premier He Lifeng. Notably, yesterday (May 9, 2025), President Trump hinted at potentially reducing punitive tariffs on Chinese imports by 80%. According to U.S. Commerce Secretary Harold Latnick, speaking on Fox News, President Trump aims to resolve the issue with China and restore calm. Since returning to the White House in January, Trump has used tariffs as a political tool to pressure allies, imposing or threatening high tariffs on major U.S. trading partners. Tariffs of 145% have been placed on Chinese imports, while China retaliated with 125% tariffs on American goods. This has led to a substantial halt in bilateral trade and significant global market disruptions. WTO Director-General Ngozi Okonjo-Iweala described the Geneva talks as ‘a positive and constructive step toward de-escalation.’ Swiss Economy Minister Guy Parmelin views the dialogue itself as an ‘achievement.’ Despite economic challenges, China announced an 8.1% export increase in April, quadruple analysts’ predictions, though exports to the U.S. dropped by nearly 18%. Both sides seek concessions, but potential outcomes could include suspending most or all tariffs imposed this year. Experts suggest these discussions might lead to symbolic and temporary measures rather than resolving fundamental disputes. However, full tariff reductions to normal levels remain unlikely, even if some cuts occur.