Talks resumed Saturday afternoon, May 10, in Geneva between Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent, with plans to continue Sunday, May 11, The Associated Press reports.
Bessent and He met after weeks of growing tensions in which duties on goods imported between the world’s two largest economies have escalated beyond 100%.
Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday, May 9, noting that the mere occurrence of the talks was already a success. Parmelin’s statement highlighted the importance of dialogue in international trade matters, emphasizing that even preliminary discussions can pave the way for substantial agreements.
President Donald Trump proposed an “80% Tariff on China” in a Truth Social post on May 9. He did not specify whether the 80% figure represented a goal or an opening negotiating stance. Trump’s call for a significant tariff was part of his broader strategy to address trade imbalances and protect domestic industries.
In a separate social media post, Trump also urged China to “open up its market,” advocating for increased access for American goods and services. He stated that Bessent would be involved in the discussions, underscoring the administration’s commitment to high-level negotiations.
Sources close to the negotiations indicated that the Trump administration is considering a plan to cut the 145% tariff on Chinese imports by more than half as early as next week, according to the New York Post. The report also mentioned that tariffs on neighboring South Asian countries might be cut to 25%.
This potential reduction in tariffs reflects a strategic shift aimed at fostering better trade relations and encouraging economic cooperation in the region. Reducing tariffs on South Asian countries could also incentivize diversified trade partnerships, benefiting both the U.S. and its trading partners.
The president has postponed extensive tariffs on numerous countries for 90 days to allow for similar negotiations while maintaining a blanket 10% baseline tariff. This temporary delay is intended to create a window for diplomatic engagement and to explore mutually beneficial trade arrangements.
The decision to retain the 10% baseline tariff, however, ensures continued protection for certain domestic industries while broader negotiations take place. Trump’s dual approach of adjusting tariffs and actively negotiating with countries reflects a trade policy aimed at balancing domestic economic interests with international trade dynamics.
