US-China Trade Talks in Switzerland: Expectations High for Tariff Reprieve

Trade talks between the United States and China, set to take place in Switzerland later this week, have generated high expectations for a potential break in the ongoing tariff standoff between the two nations, as per Bloomberg.

According to US-China Business Council President Sean Stein, a positive outcome would likely include a temporary reprieve on tariffs while both sides negotiate a longer-term resolution.

“The most negative outcome would be the talks breaking off without any future discussions scheduled,” Stein said.

He further noted that a reasonable expectation would be for tariffs to be paused for up to 90 days as negotiations continue.

“Anything less than that will likely be seen as a disappointment by both markets and observers,” Stein added.

The upcoming talks will mark the first official discussions between the two countries since President Donald Trump imposed tariffs as high as 145% on Chinese goods, prompting retaliatory tariffs of 125% from Beijing. The heightened tariff rates have already begun to disrupt trade flows, with increasing numbers of Chinese exporters halting shipments to the US and halting production on their assembly lines. E-commerce giants like Temu and Shein Group Ltd. have also raised prices, signaling that American consumers will begin to feel the financial impact.

The US-China Business Council, a private organization that represents more than 270 American companies with business interests in China, emphasized the need for certainty in the market. According to Stein, US companies are concerned that the continuation of tariffs and other trade barriers will further complicate the already strained economic relationship between the two nations. Businesses are hoping for a clear path forward in the trade talks to prevent additional challenges.

The trade discussions are set to be led by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, alongside Chinese Vice Premier He Lifeng.