Trump’s Trade Officials to Meet with China as Global Economy Faces High-stakes Pressure

By Evans Momodu, published 16:09

Trump’s trade team meets Chinese officials for critical de-escalation talks amid soaring tariffs. With the global economy at risk, can the US-China standoff cool before recession hits?

U.S. trade officials are meeting Chinese counterparts in person for the first time since March, seeking to defuse a trade war that has already disrupted global commerce and driven up prices for consumers around the world.

The talks, taking place this week in Geneva, Switzerland, come at a critical time: with tariffs soaring to historic highs, both nations face economic setbacks — and the rest of the world is bracing for ripple effects.

Treasury Secretary Scott Bessent cautioned that no trade agreement is expected from the meeting but confirmed that the goal is to lay the groundwork for future progress.

“This will be about de-escalation, not the big trade deal,” Bessent told Fox News. “But we’ve got to de-escalate before we can move forward.”

U.S. Trade Representative Jamieson Greer will also join the talks, which could result in a temporary tariff pause — a “quick win” that may offer short-term relief for businesses on both sides, according to Alfredo Montufar-Helu of The Conference Board’s China Centre.

Since March, the U.S. has implemented a 145% tariff on most Chinese imports, while China has retaliated with 125% tariffs on select American goods. These steep levies have sharply reduced trade volume between the two nations.

The last batch of tariff-exempt shipments has already arrived. Now, businesses face tough choices: absorb the cost increases or cut off trade altogether. Either way, consumers will soon face higher prices and product shortages.

• The U.S. economy contracted in Q1 2025 — the first such decline in three years — as companies rushed to stockpile goods ahead of “Liberation Day” tariffs.

• In China, factory output fell at its fastest rate in 16 months, prompting expectations of new stimulus from Beijing.

With Trump’s universal 10% tariff on virtually all imports and additional 25% duties on steel, autos, and goods from Mexico and Canada, the global trade network is under enormous stress.

Global institutions like the IMF, OECD, and World Bank warn that this escalating trade war could:

• Slow global GDP growth

• Reignite inflation

• Push the U.S. and other major economies into recession

Economists forecast the U.S. may be among the most heavily impacted, especially as trade partners continue to retaliate.

The Geneva meetings may not yield a breakthrough, but they represent a critical first step toward de-escalation. With much of the world’s economic health hinging on U.S.-China stability, any positive momentum could restore hope to anxious markets and struggling industries.
Source: CNN