US, China Initiate High-Level Trade Talks in Geneva to Ease 145% Tariffs

The United States and China have initiated high-level trade talks in Geneva, marking a significant step towards easing the ongoing tariff tensions between the two economic superpowers. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with China's Vice-Premier He Lifeng, representing the first formal discussions since the trade war escalated under the Trump administration.

The primary objective of these talks is to de-escalate the current trade tensions rather than to negotiate a comprehensive trade agreement. This dialogue comes after a period of intense tit-for-tat tariffs, with the US imposing 145% tariffs on Chinese goods and China retaliating with 125% tariffs on American products.

Both nations have shown a slight softening in their stances. China agreed to the talks following hints from the US about potential tariff relief, although China has cautioned against any form of coercion. Analysts have emphasized that expectations for these talks should remain modest, as a broader resolution could take several months and may require direct negotiations between the leaders of both countries.

Key issues such as fentanyl exports and the possibility of further US tariffs remain unresolved. Trust is another significant factor, with some Chinese analysts expressing skepticism about the US's commitment to any potential agreement.