US and China Trade Talks in Geneva: Potential Tariff Reductions in 2025

The United States and China engaged in high-level trade discussions in Geneva, Switzerland, on May 10-11, 2025, indicating a possible de-escalation in their trade tensions. U.S. Treasury Secretary Scott Bessent characterized the talks as productive, while tempering expectations of an immediate comprehensive trade agreement. The primary focus was on easing existing tensions, with both parties suggesting potential reductions in tariffs. Prior to the Geneva meeting, President Trump proposed decreasing tariffs on Chinese goods to 80%. The White House clarified that any tariff reduction would be contingent upon reciprocal concessions from China. Currently, the U.S. levies tariffs of 145% on Chinese goods, with certain products facing rates as high as 245%. In response, China has imposed tariffs of 125% on U.S. products, leading to stagnation in bilateral trade. Some experts attribute China's recent export growth, despite the tariffs, to a shift in trade towards Southeast Asia. Certain analysts suggest that the U.S. is acknowledging China's resilience in the trade war, potentially leading to a more accommodating approach. Both countries agreed to establish a “trade consultation mechanism” during the talks. A joint statement is expected soon.