U.S.-China Tariff Talks Kick Off in Switzerland: A Tentative De-escalation?
U.S. and Chinese officials conversation over trade duties
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It seems like a thaw in the trade war is on the horizon, as representatives from the U.S. and China gather for high-stakes talks in Switzerland. But both sides are downplaying expectations. Meanwhile, President Trump is keeping a tight lid on his feelings.
American President Donald Trump has been mysteriously tight-lipped ahead of the tariff talks with China. When a reporter asked him if he'd be disappointed if his finance minister, Scott Bessent, failed to strike a deal in Geneva, Trump simply shrugged and said, "Nah, man. We've already made a solid move. We ain't doing business with China right now." Yet, he made it clear he wants a fair deal for both nations in the end.
Ever since he took office, Trump has been ramping up tariffs on Chinese goods, pushing them up to an astonishing 145%. China retaliated in kind, slotting in tariffs of 125%. So far, the countries have been holding their ground instead of budging. For the first time, major players from both sides will sit down this weekend in Switzerland: Treasury Secretary Bessent, Trade Representative Jamieson Greer, and Chinese Vice-Premier He Lifeng.
Signs Point to a De-escalation
Both the U.S. and China have been digging in their heels until now, projecting strength. But recent signs hint at a possible easing of tensions. Trump let slip on his social media platform Truth Social that tariffs of 80% on Chinese products might be appropriate. Expert Dan Wang from risk analysis firm Eurasia Group told the BBC that recent signals from both camps suggest a possible temporary peace.
China clarified that the U.S. requested the talks. For a while, China had insisted that the U.S. remove tariffs before trade talks could commence. However, a spokesperson from the Ministry of Commerce said they agreed to talks after considering Chinese interests and the appeals of U.S. companies and citizens. The U.S. needs to put things right.
Bessent told news channel Fox News that the talks aren't about a trade deal, but rather about de-escalation. Both the U.S. and China have a vested interest in striking an agreement. The current tariff level is akin to a trade embargo, Bessent explained. The U.S. is simply seeking fair trade.
Britain was the first country to announce a deal with Trump. The U.S. will cut threatened tariffs on certain British cars from 27.5% to 10%, in exchange for Britain removing trade barriers for agricultural products.
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Trump, during a White House Q&A, also commented on the across-the-board tariffs of 10% he placed on goods imported from all over the world. He hinted that exceptions could be made, depending on whether a trading partner gives something "extra special" to the U.S. At the same time, he softened his stance, saying that exceptions can always happen. "But basically, you've got a base of at least 10%." And for some countries, this figure could be significantly higher.
Source: ntv.de, hul/dpa
- Tariffs
- Trade Conflicts
- China
- USA
- Donald Trump
- Geneva
- Switzerland
- World Economy
- The U.S. and China are in the process of negotiating tariff reductions, following high-stakes discussions in Geneva, Switzerland, a potential sign of de-escalation in their long-standing trade war.
- President Trump, although largely silent on the matter, has hinted that certain tariffs on Chinese goods could be lowered to 80%, potentially signaling a softening in his stance.
- Despite this, Treasury Secretary Bessent has made it clear that the negotiations are not aimed at securing a trade deal but rather achieving a de-escalation, given the significant impact of the ongoing tariffs on both economies.
- The negotiations come at a time when both countries are facing pressure from their respective industries, businesses, and even general news outlets, underscoring the far-reaching implications of trade conflicts in the realm of politics and finance.
- As the trade war between these two global powers persists, other nations are closely watching the proceedings, with hopes that a fair trade agreement will help maintain a balanced global economy and foster stronger relationships in the business and industry sectors.
