Secretary of the Treasury Scott Bescent and U.S. Trade Representative Jamieson Greer met with their Chinese counterparts in Switzerland over the weekend to address economic matters. This meeting marks an important initial step in trade discussions between the two nations, following President Donald Trump’s announcement about eliminating tariffs on what he called “Liberation Day.”
In a Tuesday interview, Bescent mentioned plans to negotiate in Switzerland, noting that the Chinese delegation would also be traversing Europe. He commented, “There are many points of contact over time,” but did not clarify who initiated the discussions.
China’s economic troubles raise tensions in tariff disputes
Bescent remarked, “The world was in the US, and China was a missing piece.” The White House is gearing up for trade negotiations with multiple countries after Trump declared a 90-day pause in April on various mutual tariffs, with the exception of China, which faces a staggering 145% tariff rate.
“We share an interest here. This situation is not sustainable, especially for China. A 145%, or even 125% tariff, essentially serves as an embargo, and we want to avoid separation,” he stated. So far, no formal trade agreements have been announced since the suspension began. Bescent indicated that extensive discussions occurred with Japan last week, and a potential deal with India might be on the horizon.
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Since the announcement of the “Liberation Day” on April 2, Trump’s tariffs have introduced instability in financial markets. The president has urged patience among voters as economic strategies take shape, especially after a 0.3% contraction was reported in the first quarter of 2025.
Bescent expressed hope that future meetings with Chinese officials would focus more on de-escalation rather than pursuing a massive trade agreement. “We have to escalate before we can move forward,” he noted.
In an interview with NBC’s “Meet the Press,” Trump remarked that lowering tariffs on China is something that must happen eventually: “Otherwise, you wouldn’t be able to do business with them.” He added that China is eager to engage as its economic situation deteriorates.
Bessent did not clarify any potential changes to tariff rates but stated that all options remain open for negotiation. “In the end, the President has indicated he’s willing to make concessions if negotiations don’t proceed as hoped.” He also asserted that one can negotiate in good faith or face re-evaluation of the current numbers, including tariffs and trade barriers.
