In Switzerland, the United States and China concluded their first high-level trade talks after a two-day meeting from October 10 to 11. Both sides reported significant progress, with the U.S. stating that substantial progress had been made and a detailed briefing would be provided on October 12. China announced plans to establish a trade dialogue mechanism with the U.S., although significant changes to the situation are not expected immediately.
Scott Bezent, U.S. Treasury Secretary, and Jameson Greer, USTR Representative, met with Chinese Vice Premier He Lifeng and Li Chenggang, the chief trade negotiator, in Geneva for the talks. Discussions were productive, and President Donald Trump was kept fully informed of the developments. Bezent highlighted the rapid achievement of agreements, suggesting the differences between the two nations may not be as large as previously thought. He noted the U.S.’s significant trade deficit with China and the emergency tariffs imposed as a result, and expressed hope that the agreement reached would help address this national emergency.
He Lifeng, representing China, noted that while substantial progress was made and a joint statement would be released on October 12, some differences and frictions are inevitable. The talks aimed to build a foundation for ongoing trade discussions, with China emphasizing a win-win approach. Despite their expressed willingness to fight to the end if necessary, China maintained its readiness to manage differences and expand areas of cooperation with the U.S.
Additionally, the discussions occurred amid significant tariffs imposed by both nations earlier in the year. However, recent reports indicated a potential reduction in U.S. tariffs from 125% to 80%, with further reductions possible. These negotiations also touched on issues beyond tariffs, such as fentanyl production and rare earth export restrictions by China. Despite potential tariff reductions, the effective rates remain significantly higher than pre-Trump administration levels, with experts advising a cautious approach to expectations from these talks.