U.S., China to hold first talks since tariff war began

The United States and China, locked in a trade war since President Donald Trump took office, will hold their first trade talks this week in Switzerland, raising hopes they might ease tariffs that have climbed as high as 145% on Chinese goods and 125% on U.S. exports.

The U.S. Treasury Department and the Office of the U.S. Trade Representative said Tuesday that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet with Chinese officials in Switzerland on Friday and Saturday.

“Our two countries have shared interests,” Bessent told Fox News, adding that the current tariff levels are “unsustainable and tantamount to a mutual trade embargo.” He emphasized, “We don’t want to decouple. What we want is fair trade.”

Bessent said the talks are aimed at de-escalating tensions rather than reaching a sweeping trade deal. “We’ve got to de-escalate before we can move forward,” he said.

China’s Foreign Ministry said Vice Premier He Lifeng, who is visiting Switzerland from May 9 to 12, will serve as Beijing's lead negotiator. He, considered President Xi Jinping’s top economic adviser and a key figure in the Xi faction, has no overseas study or work experience and is known for favoring a state-led economic model. Analysts say that could limit his flexibility at the table.

China’s Ministry of Commerce said in a statement that Beijing had agreed to the talks after “fully considering global expectations, China’s national interests, and the needs of U.S. industries and consumers.” But it warned, “We will never tolerate coercion or intimidation disguised as negotiations” and vowed not to compromise on “principles or justice.”

Markets reacted positively to news of the talks. Futures on the S&P 500 rose 0.6%, and the dollar snapped a three-day losing streak, according to Bloomberg.

Woo-Sun Lim imsun@donga.com