US-China Trade Talks Aim to Ease Tensions

US President Donald Trump's top trade officials are meeting with Chinese counterparts in Geneva, Switzerland, to discuss de-escalating their trade war, which has had a damaging impact on both economies and the global economy. The US has imposed a 145% tariff on most Chinese imports, while China has responded with a 125% tariff on some US imports, causing trade between the two countries to drop dramatically. Economists predict that Trump's trade war could lead to a recession in the US and slow global growth. Although a trade deal is unlikely, any thaw in the trade war could be a welcome sign for businesses and consumers. The talks are seen as a first step towards de-escalation, with Treasury Secretary Scott Bessent saying it could take two to three years for trade to normalize with China.

Cargo at the Port of Los Angeles is down 35% year-over-year this week following newly increased U.S. tariffs on Chinese goods, triggering sharp declines in work for longshore workers and surrounding businesses such as trucking, warehouses, and safety-gear vendors. Given the port complex handles roughly 31% of U.S. containerized trade and supports 1 in 12 local jobs, officials warn the impact will ripple nationwide, affecting manufacturers, retailers, and consumers. Importers may face product shortages and price increases within 4–6 weeks as pre-tariff inventories deplete. Even if tariffs ease, experts say shipping schedules and trade patterns could take time to recover, with potential long-term shifts away from U.S. trade routes.

Top U.S. trade officials Scott Bessent (Treasury) and Jamieson Greer (U.S. Trade Representative) will meet Chinese counterparts, including Vice Premier He Lifeng, in Geneva for the first formal talks since President Trump hiked tariffs on Chinese imports to at least 145% in April. Both sides signal interest in de-escalating but neither wants to move first, and the scope or timing of any deal is unclear. The U.S. cites fentanyl flows and unfair trade practices; China calls the tariffs illegal and demands U.S. “sincerity” and correction of “wrong practices.” Businesses report severe disruptions, with U.S. imports from China at a decades-low share. Economists say even partial de-escalation would bring economic and political benefits. U.S. officials will also meet Switzerland’s president to discuss a potential trade deal.

China is pouring billions into Moroccan factories, especially EV and battery supply chains, to bypass high U.S. and EU tariffs by using Morocco’s favorable trade access to Europe. Morocco has built a strong auto ecosystem—ports like Tangier-Med, low costs, phosphate resources for batteries, and growing clean energy—making it a prime hub. Chinese firms such as Gotion, Sentury, and others are setting up major projects, with Chinese investment in the sector estimated around $10 billion. This strategy mirrors how Mexico has served U.S.-bound manufacturing. However, rising U.S.-China and EU-China tensions create risks for Morocco, which is balancing deepening Chinese economic ties with its strategic partnerships with the U.S. and Europe, its free-trade agreements, and priorities like Western Sahara. A tougher U.S. tariff posture under Trump could pressure Morocco to curb Chinese-linked production, forcing more cautious hedging.

China cautioned the U.S. against using dialogue as “coercion” ahead of high-level trade talks in Switzerland, the first in-person meeting since the latest trade war escalation. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice-Premier He Lifeng from May 9–12. Beijing said it will engage while considering global expectations, China’s interests, and U.S. industry concerns. Washington has hinted at potential tariff adjustments, with Bessent framing the talks as aimed at de-escalation rather than a sweeping trade deal.

The United States and China will hold their first high-level trade talks in Switzerland this weekend, with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer meeting Chinese negotiators. The discussions come as both sides soften rhetoric amid the economic strain of steep, near-embargo-level tariffs. Public reaction highlighted skepticism about meaningful progress and concerns that China holds leverage, but the talks signal a potential opening to ease the trade war.