US and China Are Meeting to Talk Trade This Weekend—Here’s What We Know

This weekend could be a turning point for the trade dispute between the world’s two largest economies.

U.S. and Chinese officials are scheduled to meet in Switzerland starting on Saturday, and investors are optimistic about what could result. A thawing of the relationship between the two trading partners could provide some relief for businesses and consumers who have been bracing for higher prices and empty shelves.

While the U.S. and China are being careful with what they say ahead of the talks, here’s what we know about the discussions.

What’s the Status of the Trade Relationship?

The U.S. and China have been in a tit-for-tat trade dispute in recent weeks, resulting in high tariffs levied on both countries.

President Donald Trump has pushed tariffs on Chinese goods coming into the U.S. to 145%. In response, China’s government ratcheted up import taxes on U.S. goods coming to their country to 125%. Economists have said that duties that more than double the price of goods essentially amount to a trade embargo.

China is the U.S.’s third-largest trading partner, according to the most recent data available from the Census Bureau. America has brought in more than three times the amount of goods from China than it exported there so far this year.

Who Is Involved in the Trade Talks?

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will negotiate on the U.S.’s behalf.

Bessent has been vocal about the trade spat between the two countries, saying that the current tariff levels are “unsustainable” and that de-escalation was likely in the cards. In a press release announcing his trip to Switzerland, Greer said he would be “negotiating with countries to rebalance our trade relations to achieve reciprocity.”

For China, Vice Premier He Lifeng will spearhead the discussions. He is reportedly close to Chinese President Xi Jinping and is expected to toe the government’s official line. China’s Ministry of Commerce has said, “whether through confrontation or negotiation, China’s determination to safeguard its development interests will not change.”

Will a US-China Trade Agreement Be Reached?

While Trump said Thursday that he expects talks to be “substantive”, it’s unlikely the delegations will be able to hammer out a complete trade agreement over the weekend.

U.S. trade agreements take an average of 18 months to negotiate and often even more time to implement, so de-escalation of the tariffs would be more likely. On Friday morning, Trump suggested that tariffs on Chinese goods could be lowered to 80% but said he would leave the final number up to Bessent.

The two countries could also discuss other trade barriers, such as the de minimis exemption that Trump excluded China from last week, affecting Chinese bargain shopping sites like Temu and Shein.