GENEVA –  For the first time in years, high-level delegations from the United States and China sat down in Geneva this weekend, aiming to de-escalate the prolonged trade war that has rattled global markets. Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the two-day summit is seen as a critical opportunity to restore confidence amid growing economic strain from retaliatory tariffs.

Signs of Flexibility from Both Capitals

President Donald Trump, who escalated the trade conflict in April by raising tariffs on all Chinese imports to a steep 145%, hinted on Friday that he is open to lowering that rate to 80%—a significant concession. White House Press Secretary Karoline Leavitt clarified that while the president’s figure was “thrown out as a starting point,” real progress depends on “substantial concessions” from Beijing, particularly in areas of intellectual property protection and state subsidies.

On the Chinese side, Vice Premier He Lifeng expressed cautious optimism, stating that Beijing is prepared to explore “mutually beneficial solutions” provided the US demonstrates sincerity in reducing economic pressure. Chinese media have emphasized that any agreement must be built on “equality and mutual respect.”

Global Pressure Fuels Urgency

The Geneva talks come against the backdrop of slowing global trade growth and mounting calls from businesses on both sides for relief. US and Chinese industries—from tech giants to agricultural exporters—have reported escalating costs due to tariffs, intensifying the urgency for a resolution.

Sources close to the talks told Reuters that negotiators are working on a phased framework that could see partial tariff rollbacks in exchange for enforceable commitments on trade practices. No official deal has been reached yet, but both delegations are expected to continue technical discussions beyond Sunday.

Market Reaction and Next Steps

Financial markets responded with cautious optimism. US and Asian stock indices edged higher on Monday amid speculation that an interim deal could materialize in the coming weeks. Analysts warn, however, that deep-rooted issues remain and that past talks have collapsed at advanced stages.

Further meetings are tentatively scheduled for early June, with Geneva again expected to host follow-up sessions. (zai)