US China, First official meeting of the tariff war in Switzerland this week
Donald Trump American President and Xi Jinping Chinese President (Source: AFP)
The United States and China are set to embark on the first official meeting to restore trade relations that were effectively severed after a full-scale tariff clash. This meeting marks the first time the two countries sit at an official table after President Donald Trump regained power, and while an immediate agreement may be difficult, it is interpreted as an important signal to gauge the shift in the trade war's phase.
The U.S. Department of Treasury announced that Secretary Scott Bessent is scheduled to visit Switzerland on the 8th (local time) to meet with Chinese representative Vice Premier He Lifeng of the State Council. Secretary Bessent stated, “Economic security is national security, and I look forward to meaningful dialogue to establish a new international economic order that prioritizes America’s interests.”
On the same day, the U.S. Trade Representative (USTR) also announced that Representative Jamieson Greer will discuss trade issues with Chinese officials in Switzerland. Representative Greer expressed hopes that this meeting would advance the U.S.'s multilateral strategy, stating, “We are negotiating with countries for the restoration of reciprocity, new market openings, and the strengthening of American economy and security.”
The Chinese Ministry of Foreign Affairs confirmed that Vice Premier He Lifeng will visit Switzerland from the 9th to 12th at the invitation of the Swiss government and will hold economic and trade talks with the U.S. during this period. The Chinese Ministry of Commerce explained, “The U.S. has delivered multiple messages recently regarding tariff adjustments, and considering the concerns of global entities, Chinese businesses, and consumers, we decided to enter into dialogue.”
This meeting is the first since President Trump imposed a 145% high tariff on Chinese products, and China responded with a 125% retaliatory tariff on U.S. goods. In a recent interview, President Trump mentioned, “We have effectively cut off trade with China,” adding, “There might be a point where tariffs can be lowered, but not now.”
China has begun negotiations, but it still maintains a tough stance. The Ministry of Commerce spokesperson warned, “We will not respond to dialogues lacking mutual respect and reciprocal agreements,” adding, “If pressure or blackmail continues under the guise of negotiation, China will respond resolutely.”
Meanwhile, the Trump administration is concurrently conducting tariff negotiations with several major countries besides China. Secretary Bessent hinted that “in the near future, we may announce trade agreements with some major trading countries,” indicating that India, Japan, and the UK might be among the targets.
Even if this meeting fails to create a clear breakthrough, the fact that the two countries started dialogue from a confrontational phase is being positively received in the market.