World

US and China begin talks on easing trade war

By AAP Newswire

May 10, 2025

US Treasury Secretary Scott Bessent in Geneva, Switzerland — US Treasury Secretary Scott Bessent is in Switzerland for trade talks with China. -EPA

Chinese Vice-Premier He Lipeng have held talks with US Treasury Secretary Scott Bessent in Switzerland in a tentative first step towards defusing a trade war that is disrupting the global economy, according to China's state-owned news agency and two people close to the talks.

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Bessent and US Trade Representative Jamieson Greer were due to meet He in Geneva on Saturday after weeks of growing tensions that have resulted in duties on goods imports between the world's two largest economies soaring well beyond 100 per cent.

The trade dispute, combined with US President Donald Trump's decision in April to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp global downturn.

US President Donald Trump said on Friday an 80 per cent tariff on Chinese goods "seems right", suggesting for the first time a specific alternative to the 145 per cent levies imposed on Chinese imports.

The location of the talks has been kept secret, although a witness saw over a dozen police cars outside a private residence in a leafy Geneva suburb.

Mercedes vans with tinted windows were seen leaving a Geneva hotel where the Chinese delegation was staying on the banks of Lake Geneva.

Earlier, a delegation of over a dozen US officials, including Bessent and Greer, were seen smiling and wearing red ties and American flags on their lapels as they left their hotel.

Bessent declined to speak to reporters.

By AAP Newswire

Australian Associated Press