US, China to Hold Trade Talks in Switzerland Amid Escalating Tariff War

US and Chinese officials are set to hold high-level trade talks in Switzerland from May 9–12 to ease tensions in an escalating trade war. Chinese Vice Premier He Lifeng will represent Beijing, while US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will represent Washington. Since President Trump’s return to office, the US has imposed tariffs of up to 145% on Chinese goods, prompting China to retaliate with levies of up to 125%. These negotiations mark the first senior diplomatic engagement since January and aim to de-escalate rather than finalize a comprehensive trade deal. Bessent emphasized the need to rebalance the global economic system, while China criticized the negative global impact of US tariffs. Chinese state media said the decision to engage was based on national interest and global pressure but warned China would fight back if necessary. Experts expect the talks to be lengthy and complex, with comparisons drawn to the prolonged 2018 trade dispute. Financial markets in China and the US responded positively to news of the dialogue, though analysts remain cautious about immediate outcomes. Meanwhile, investors are also anticipating the US Federal Reserve’s latest decision on interest rates, adding another layer of uncertainty to global economic forecasts.