U.S., China begin high-stakes tariff talks in Switzerland

Top U.S. trade officials are in Switzerland this weekend for crucial negotiations with China that could shape the future of the global economy.

(CNN)-  Top U.S. trade officials are in Switzerland this weekend for crucial negotiations with China that could shape the future of the global economy. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are leading the delegation in what marks the first in-person meeting between the two countries since the onset of a punishing trade war. While the itinerary includes discussions with the Swiss president, the spotlight is firmly on the talks with China.

“Scott’s going to be going to Switzerland meeting with China, and you know they very much want to make a deal,” President Donald Trump told reporters from the White House driveway.

espite the pressure, Bessent signaled modest expectations ahead of the talks, telling Fox News that a sweeping agreement is unlikely this weekend. Instead, he emphasized the need to de-escalate tensions between the world’s two largest economies.

“On Saturday, we will begin, which I believe is the opposite of advanced,” Bessent said, hinting at a cautious, step-by-step approach.

The talks come in the wake of Trump’s decision to raise tariffs by 145% on most Chinese imports — a move met with swift retaliation from Beijing, which imposed a 125% duty on select American exports. Those tit-for-tat measures are now beginning to hit home, with the first shipments of Chinese goods affected by the new tariffs arriving at U.S. ports. Economists warn American consumers could soon face product shortages and rising prices.

“There’s not an economist alive who thinks that the economy isn’t facing enormous and unnecessary risks,” said Justin Wolfers, economics professor at the University of Michigan.

Dan Ives of Wedbush Securities echoed the significance of the weekend, saying, “It all goes back into this weekend with Bessent in Switzerland.”

Adding to the global implications, other nations are closely monitoring the outcome. The U.S. and U.K. announced a preliminary framework for a trade deal, though it came without specifics. Meanwhile, the European Commission is threatening $107 billion in retaliatory tariffs if the U.S. doesn’t soften its stance on the European Union.