Treasury secretary, U.S. trade rep to talk trade with Chinese in Switzerland

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet this weekend with their Chinese counterparts in Switzerland, a sign of a potential thaw in the debilitating trade war between Washington and Beijing.

The meetings in Geneva are notable because both sides have dug in with tit-for-tat tariffs that exceed 100% — levies that have slowed China’s export-heavy economy and threaten to raise prices in the U.S.

“I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the United States,” Mr. Bessent said.

Wall Street reacted positively to the news, with Dow Futures way up following the announcement.

The world’s two largest economies are locked in a stalemate after President Trump announced “Liberation Day” tariffs on trading partners around the world. While other countries opted to negotiate, Beijing hit back, leading to sky-high tariffs that both sides don’t see as sustainable.

Mr. Bessent said the Switzerland meetings will be a chance to cool things down, not strike a grand deal.

“My sense is that this will be about de-escalation, not about the big trade deal,” Mr. Bessent told Fox News host Laura Ingraham. “But we’ve got to de-escalate, before we can move forward.”

China has seen a marked decline in factory output over the last month. On Wednesday, Beijing insisted it could withstand any pressure from the U.S. and characterized the meeting as a request from Washington.

“Recently, the U.S. said repeatedly it wants to negotiate with China. This meeting is requested by the U.S. side,” Chinese Foreign Ministry spokesman Lin Jian said. “As we’ve stressed many times before, China is open to dialogue, but any dialogue must be based on equality, respect and mutual benefit. To pressure or coerce China in whatever way simply does not work.”

Tensions remain high, with Mr. Trump objecting to Beijing’s assertion that the U.S. initiated the talks.

“I think they ought to go back and study their files,” Mr. Trump said.

Asked if he’d be willing to bring down his 145% tariff level on Chinese goods to get Beijing to the negotiating table, Mr. Trump said, “No.”

The meetings won’t be limited to China.

Mr. Bessent and Mr. Greer will meet with Swiss President Karin Ketter-Sutter to discuss reciprocal trade, and Mr. Greer will meet with the U.S. trade mission to the World Trade Organization.

“I look forward to having productive meetings with some of my counterparts as well as visiting with my team in Geneva who all work diligently to advance U.S. interests on a range of multilateral issues,” Mr. Greer said.

Retailers say import shipments are starting to dry up as the tariffs begin to bite. 

Some companies say they have no choice but to raise prices, given the increased cost of imported goods.

Mr. Trump said he would mull tariff exemptions for certain products, such as car seats, that families rely on for their young children.

“I don’t know, I’ll think about it,” Mr. Trump said in the Oval Office. 

“I want to make it nice and simple, I’m not looking to have so many exemptions,” he said. “But I’ll take a look at it.”