US-China trade talks will begin this week. Both sides will meet to ease tensions caused by tariffs. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will travel to Switzerland for the discussions. They will meet China’s Vice Premier He Lifeng. So, the talks aim to de-escalate the ongoing tariff standoff, which has hurt both economies.
This marks the first confirmed meeting since President Donald Trump imposed tariffs as high as 145% on Chinese imports. In response, China raised its own tariffs. This has increased pressure on the global economy. The US claims that the tariffs are necessary to level the trade playing field. On the other hand, China argues that the tariffs undermine international fairness.
In a recent interview, Bessent explained that the current tariff rates are unsustainable. He warned that they could lead to a trade embargo. Bessent emphasized that the US-China trade talks would focus on de-escalation, not a full trade deal. The goal is to avoid further breakdowns and promote fair trade between the countries.
China’s Ministry of Commerce has stressed that sincerity must guide the talks. It insists that any agreement should result from “equal consultation” and mutual respect. The ministry also warned that China would not accept unfair terms under the guise of negotiations.
Amid the ongoing tariff dispute, China has already adjusted its economic policy. On Wednesday, the country reduced its policy rate. It also lowered the reserve requirement for banks. These moves aim to protect Chinese businesses and consumers from the tariff impact.
The outcome of these US-China trade talks will likely have a major impact on global markets. The tariff war has disrupted supply chains. It has also caused uncertainty for manufacturers. Following confirmation of the talks, US equity-index futures rose. However, concerns about long-term economic fallout remain.
The talks in Switzerland will determine the future of US-China trade talks and the global economy.
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