The United States and China have begun seeking a solution to the "tariff war." The two countries wrapped up the first day of negotiations in Geneva, Switzerland, on the 10th (local time). The key issue is the high tariff rates.
Reuters reported that U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng met in Geneva that day. The negotiating teams from both sides started discussions at 10 a.m. and concluded the first day's agenda around 8 p.m.
This meeting was conducted in extreme secrecy. The chief representatives did not disclose their remarks either.
This meeting was the first face-to-face encounter between the two countries' ministers since the inauguration of the second Trump administration. U.S. Trade Representative Greer joined the negotiating team from the U.S., while Minister Wang Xiaohong from the Ministry of Public Security represented China.
Currently, both countries have imposed tariff rates exceeding 100%, effectively severing trade relations. Since Trump's inauguration, the U.S. has levied a 145% tariff on Chinese goods, while China has placed a 125% tariff on U.S. products.
In these negotiations, it is highly likely that the reduction of these tariffs was addressed as the top priority.
China holds the position that "the tariff war was initiated by the U.S." Experts have assessed that China likely demanded proactive tariff reductions from the U.S. based on the principle of "who ties the knot must untie it."
Conversely, it is highly likely that the U.S. set conditions for the expansion of market openings in China and the withdrawal of restrictions on rare earth exports.
The Wall Street Journal (WSJ) analyzed, "China's inclusion of Director General Wang in the discussions indicates an intention to address the issue of fentanyl precursor smuggling." This matter is one of the justifications for the U.S. tariff hikes.
Foreign media have evaluated that this meeting is a first step toward easing tensions. However, if the discussions continue to end without substantial achievements after the first day, the psychological warfare between the two countries may prolong.
Trump stated the day before that "an 80% tariff rate on Chinese imports is appropriate." In contrast, U.S. media reported, "the Trump administration is likely to propose a reduction to the 50% range."
There are analyses suggesting that "holding the meeting in Geneva, where the WTO headquarters is located, reflects Trump’s intention to curb protectionism."