In Geneva, U.S. Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng as part of ongoing efforts to mitigate tensions between Washington and Beijing.

The Biden administration has reiterated that a universal tariff of 10% will apply to all countries, regardless of any agreements reached during these discussions.

Former President Donald Trump has stated that tariffs of 80% on imports from China 'seem appropriate,' amidst the current U.S. imposition of 145% tariffs on nearly all Chinese goods, with exceptions for certain consumer electronics and smartphones.

Beijing has retaliated with tariffs of 125% on American products and has restricted the export of rare earth materials and other strategic resources to the United States.

After a temporary halt of 90 days announced in early April, the universal 10% tariffs are now in effect, a baseline the White House spokesperson Karoline Leavitt confirmed will remain in place during the negotiation talks.

President Trump’s remarks were conveyed through his social media platform, where he referenced Bessent and emphasized a desire for meaningful negotiations.

This meeting in Geneva marks the first direct dialogue between the two nations since the escalation of trade tensions that began with Trump's tariff announcements on April 2.

While an 80% tariff on China may be seen as unsustainable, analysts suggest that such statements serve as a signal of the urgency on both sides to reach a resolution to the ongoing trade war, which has taken on characteristics akin to an embargo, reflecting a precursory stage of potential economic decoupling.

Trade experts indicate that it is unlikely the Geneva meeting will culminate in a new trade agreement, unlike a recent accord between the U.S. and the United Kingdom, but the discussions may serve to alleviate some of the current tensions.

Additionally, the inclusion of Wang Xiaohong, China’s Minister of Public Security and a senior official, underlines the significance of addressing the fentanyl crisis within the trade dialogue.

Current economic data indicates that the trade surplus of China with the U.S. has decreased significantly, falling to $20.46 billion in April from $27.58 billion in March, with monthly exports dropping by 17.6% to $40.1 billion, according to Chinese customs data.

In annual terms, exports are down more than 21%, while imports have declined nearly 14%.

In contrast, China's overall trade surplus rose to $96.18 billion from $72.04 billion in April 2024, driven by an 8.1% increase in exports against a slight decrease in imports.