Commerce Secretary Howard Lutnick says the Trump administration sees the talks with Chinese officials in Geneva as an opportunity to “de-escalate” the trade war between the world’s two biggest economies.
Treasury Secretary Scott Bessent traveled to Switzerland to meet with his Chinese counterparts, days after President Trump celebrated his first big breakthrough in trade negotiations with the United Kingdom.
“One of his objectives is to de-escalate,” Mr. Lutnick said on “Fox News Sunday.”
Mr. Lutnick said the 145% tariff the administration imposed on China and the 125% tariff China imposed on the United States have essentially frozen trade. “So he is there to see if he can reset the conversation,” he said.
Mr. Trump is looking to build on the momentum from a new trade agreement with the United Kingdom that lowers the tariffs on British steel, aluminum, and cars and opens up more access to the British market to American farmers.
The United Kingdom is still subject to the baseline 10% tariff that Mr. Trump has signaled is the new norm on imports.
“Just look at that deal; it opened the U.K. market for the first time to $5 billion in exports,” Mr. Lutnick said. “Go talk to a beef rancher right now, or a corn farmer right now — they are ecstatic. “They have never been allowed into the U.K. market, and now they will be allowed,” he said.
Mr. Lutnick also shot down reports that the administration is focused on negotiating trade deals with countries that isolate China’s economy.
“We are not under any circumstances focused on China when we are talking to other countries,” Mr. Lutnick said.
On Saturday, Mr. Trump said the U.S. and Chinese officials had a “very good meeting.”
“Many things discussed, much agreed to,” Mr. Trump posted on Truth Social. “A total reset negotiated in a friendly, but constructive, manner.”
Mr. Lutnick declined to shed new light on what was agreed to, but said on CNN’s “State of the Union” the administration is “optimistic that things will work out well.”
Mr. Lutnick also dismissed economists’ warnings that tariffs would force consumers to pay more for goods.
“Don’t buy into these economists who are not in the real world,” he said.
During an appearance on CNN’s “State of the Union,” Mr. Lutnick said those warnings are “silly” and “the business and the countries primarily eat the tariffs.”
