US-China talks are capturing the attention worldwide primarily driven by high-stakes trade negotiations held in Geneva, Switzerland, from May 10-12.
U.S.-China Trade Talks in Geneva
The recent trade negotiations in Geneva have been a focal point for global economic discussions. These talks, involving U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, marked the first face-to-face engagement since U.S. President Donald Trump imposed 145% tariffs on Chinese imports in early April 2025. China retaliated with 125% tariffs on U.S. goods, escalating tensions to the point of a near trade embargo.
Key Outcomes of the Geneva Talks
The Geneva negotiations, described as a “total reset” by Reuters, resulted in a significant agreement to slash tariffs for a 90-day period while further discussions continue. This temporary de-escalation followed months of economic brinkmanship. U.S. officials reported “substantial progress,” with Bessent and Greer indicating that a joint statement would be released on May 12 to outline the deal’s details. Chinese Vice Premier He Lifeng called the talks “candid, in-depth, and constructive,” noting the establishment of a new consultation mechanism for trade and economic issues.
Background of the Trade War
The current trade war traces back to January 2018, when the first Trump administration began imposing tariffs on China, citing unfair trade practices, intellectual property theft, and a significant U.S.-China trade deficit ($263 billion in 2024). A “Phase One” agreement in January 2020 temporarily eased tensions, but China failed to meet its commitment to purchase an additional $200 billion in U.S. goods, partly due to COVID-19 disruptions.
Tensions reignited in 2025, with Trump’s second term introducing aggressive tariffs, starting at 20% in February (linked to fentanyl concerns) and escalating to 145% by April. China’s retaliatory measures, including 125% tariffs and restrictions on U.S. agricultural imports, have crippled bilateral trade, which totaled $660 billion in 2024. The Geneva talks were prompted by mutual economic pain, with U.S. imports from China dropping 75-80% and China facing factory slowdowns.
Economic Impact on the U.S. and China
In China, export growth of 8.1% in April 2025, driven by shipments to Southeast Asia, suggests resilience, possibly through trans-shipment strategies to bypass U.S. tariffs. However, factory activity contracted at its fastest pace in 16 months, prompting China’s central bank to announce monetary stimulus, including rate cuts and liquidity injections.
The 64% drop in U.S. imports from China are evidence of decoupling.
Factory Closures and Protests
There are claims that U.S. tariffs have triggered widespread factory closures and protests in China, particularly in export hubs like Guangdong. For example, Radio Free Asia reported a “prevailing sense of helplessness” among Chinese workers, citing unpaid wages and strikes. China’s official data and state media, such as Xinhua, project confidence, emphasizing export growth and strategic moves like cracking down on strategic mineral smuggling (e.g., gallium, germanium).
Global Context
Globally, China has sought to align with other nations wary of Trump’s tariffs. For instance, President Xi Jinping’s call for the EU to oppose “unilateral bullying” and China’s progress in lifting sanctions on European parliamentarian’s signal efforts to diversify trade partnerships.
Conclusion
The Geneva talks, culminating in a 90-day tariff reduction, have spotlighted U.S.-China relations, driving discussions about global economic stability.
