Kathmandu: Senior U.S. and Chinese officials met in Geneva on Saturday in a bid to ease mounting trade tensions between the world’s two largest economies, following months of retaliatory tariffs that have strained economic relations and roiled global markets.

The high-level talks — the first since President Donald Trump’s latest round of sweeping tariffs — brought together U.S. Treasury Secretary Scott Besant, U.S. Trade Representative Jameson Greer, and Chinese Vice Premier He Lifeng. The closed-door discussions took place at the Swiss ambassador’s residence in Geneva and are expected to continue into Sunday.

The talks come as the U.S. has raised tariffs on Chinese goods to as high as 245%, with China retaliating with up to 125% duties on U.S. exports. Trump hinted on Friday that the U.S. might be open to lowering tariffs, tweeting that the “80 percent tariff on China looks right,” while leaving room for potential reductions.

However, Trump’s press secretary Carolyn Leavitt clarified that the U.S. would not reduce tariffs unilaterally, stating that any relief would require Chinese concessions.

Commerce Secretary Howard Lutnick echoed this stance in an interview with Fox News, saying Trump “wants to deescalate the situation” but “will act firmly if necessary.”

Signals of Progress — But No Breakthrough Expected
Experts say the Geneva talks are unlikely to yield a major trade deal but represent an important symbolic gesture that both sides remain willing to engage. “This meeting is a good sign,” said Bill Reinsch, senior adviser at the Center for Strategic and International Studies. “But relations are deteriorating, and tariffs remain highly restrictive on both sides.”

Xu Bin, an economics professor at the China Europe International Business School, emphasized that “China remains the only major economy that has directly retaliated in kind to Trump’s tariffs,” adding that the current dialogue is crucial to preventing further escalation.

U.S. negotiators said their primary goal is to de-escalate tensions, not to finalize a comprehensive trade pact. Meanwhile, China has reaffirmed its intent to protect its economic interests while remaining open to dialogue.

WTO and Global Reactions
WTO Director-General Ngozi Okonjo-Iweala welcomed the meeting, calling it a “positive and constructive step.” Investors and global markets, rattled by months of uncertainty, are cautiously watching the talks for signs of thawing relations.

Adding to the complexity, China’s exports surprisingly rose last month — an outcome analysts attribute to trade rerouting through Southeast Asia to offset the impact of U.S. tariffs.

Trump’s Mixed Signals and Deal with the UK
The Geneva meeting followed Trump’s announcement of a preliminary trade agreement with Britain, which involves tariff adjustments on cars, steel, and aluminum. In return, the UK has agreed to open its market to U.S. beef and other agricultural products.

Despite this progress, Trump has maintained a 10% base tariff on most British goods, which remains a sticking point in ongoing talks with other trade partners. However, Trump hinted at possible exceptions, saying, “If someone does something extraordinary for us, that’s always possible.”

This renewed U.S.-China engagement comes at a critical moment for global trade. While no grand bargain is expected immediately, even modest progress in Geneva could set the stage for more serious negotiations in the months ahead.