In Geneva, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer began discussions with Chinese officials, led by Vice Premier He Lifeng, aimed at mitigating escalating trade tensions between the U.S. and China. This meeting, confirmed by both diplomatic sources and reported by China’s Xinhua News Agency, focused on the severe tariffs imposed by both countries—U.S. tariffs on China have reached 145%, while China retaliated with a 125% levy. These tariffs disrupt a trade relationship valued at over $660 billion, essentially boycotting each other’s goods.
Prospects for resolving these disputes appear limited, but there is a glimmer of hope that both countries might agree to scale back their tariffs, which could positively impact global markets. President Trump suggested a reduction of tariffs, emphasizing a potential decrease as a positive signal amid the talks.
Tensions have been intensified by allegations that China uses unfair practices to bolster its tech industry, prompting Trump’s administration to impose significant tariffs as leverage. Previous negotiations culminated in a Phase One agreement in January 2020, which was compromised by the COVID-19 impact on trade.
Furthermore, during the meetings, Bessent and Greer are expected to engage with Swiss President Karin Keller-Sutter. Switzerland is alert to trade tensions, particularly regarding crucial sectors like watches and cheese, exacerbated by U.S. tariffs. The Swiss government has indicated a lack of immediate countermeasures, given the potential economic impact and their strong trade relationship with the U.S.
As discussions progress, experts remain cautious but hopeful that any reduction in tariffs could signify a step toward mending the strained U.S.-China trade relationship.
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