SCOTT SIMON, HOST:
In Geneva, officials from the United States and China are sitting down together for the first time since President Trump raised tariffs on Chinese goods to 145%. The meetings could be the first step in ending a trade war that has upset financial markets in recent weeks. But as Willem Marx reports, this first step could be followed by many others over a long period.
WILLEM MARX: The U.K. struck its own limited deal with President Trump that's left 10% tariffs still in place on most British exports. This past week, Treasury Secretary Scott Bessent said many other nations have sought out new trading arrangements with the United States, yet he called China the missing piece because Beijing's balked at any negotiations, at least until now. This weekend's talks, Bessent said, came about by chance. He and the U.S. trade representative, Jamieson Greer, were planning to be in Switzerland already on Friday for tariff discussions with the Swiss. Then they learned the Chinese would be in town, too, as he explained during a recent interview on Fox News.
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SCOTT BESSENT: What we're going to do in Switzerland is, you know, we've agreed to talk. Then, on Saturday and Sunday, we will agree what we're going to talk about. My sense is that this will be about de-escalation, not about the big trade deal. And - but we've got to de-escalate before we can move forward.
MARX: When Bessent arrived in Geneva Friday, he met senior Swiss officials, including President Karin Keller-Sutter. She told him she hoped the Holy Spirit that had visited Rome this week during the election of a new pope might travel up to Geneva this weekend to help nudge things along. And she told NPR her country's centuries-old reputation as a peacemaker played a part in prompting these current conversations.
PRESIDENT KARIN KELLER-SUTTER: This is very important to Switzerland, and it also shows that Switzerland, as a country and as a neutral country, is appreciated, and we offer those good services. And the chance has been taken by China and the U.S., and we really hope that this platform we can offer will also lead to a result because it would be in the interest of, I would say, the world economy and world commerce.
MARX: President Trump says, as he did during his first term, that he wants Chinese authorities to end what he calls their currency manipulation, as well as subsidies for labor and certain industries that make it difficult for American firms to compete. But according to Dmitry Grozoubinski, a former Australian diplomat and trade negotiator who wrote a book called "Why Politicians Lie About Trade," this latest trade dispute may ultimately conclude in much the same way as Trump ended the last one.
DMITRY GROZOUBINSKI: He was willing to accept an agreement where he got to announce a very, very large number and declare it to be a triumph. He, I think, will be open to doing something like that again. He certainly wants to demonstrate his strategy is working and that he has taken it to China. Potentially, there is a deal to be had here, driven by the fact that really neither side wants this right now.
MARX: President Trump wrote on social media Friday that China should open up its markets to the United States and that a reduction in the current 145% tariffs on Chinese exports to around 80% seemed about right to him, but he'd ultimately leave that up to Secretary Bessent. Bessent, in turn, has acknowledged the current tariffs are unsustainable and effectively amount to an embargo on Chinese goods, but he hasn't said publicly where he wants to end up. And any end to such negotiations will take time, says Grozoubinski, who now lives in Geneva, where he's executive director of the Geneva Trade Platform.
GROZOUBINSKI: Both sides are hurting and are going to hurt more the longer it goes off. So this is going to be the first steps in a dance where they try to feel out, OK, what would a win for you look like, and is that a price we're willing to pay?
MARX: At such a delicate moment, public communication from both sides is limited. The Chinese have only confirmed one member of their delegation that will attend, He Lifeng, the vice premier for economic policy. And neither they nor the Americans are disclosing where in this ancient city, known for its secrecy and discretion, the two sides will actually meet.
For NPR News, I'm Willem Marx in Geneva, Switzerland. Transcript provided by NPR, Copyright NPR.
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