Trade tensions between the United States and China have reached a critical juncture, with high-level negotiations set to continue on Sunday. The talks, taking place in Geneva, mark the first serious attempt at de-escalation since President Donald Trump imposed 145 percent tariffs on Chinese imports. Beijing retaliated with 125 percent levies on American goods, effectively freezing trade between the world’s two largest economies.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are leading the American delegation, while Chinese Vice Premier He Lifeng represents Beijing. The discussions have been described as “sensitive”, with both sides keeping details under wraps. The goal appears to be reducing tariffs, a move that could stabilize global markets and ease pressure on businesses caught in the crossfire.
The stakes are enormous. Trade between the two nations topped $660 billion last year, but the latest tariffs have disrupted supply chains and sent shockwaves through financial markets. Trump hinted at a possible reduction, posting on Truth Social that an “80 percent tariff seems right”, though his administration insists that any concessions must come from China first.
China is feeling the pressure. Economic indicators suggest Beijing is struggling under the weight of U.S. trade restrictions. The Chinese government has responded by cutting key interest rates, injecting $138 billion in liquidity, and ordering banks and state firms to prop up struggling sectors. These moves signal that China is looking for relief, making the Geneva talks a potential turning point.
The outcome remains uncertain. Analysts believe a full trade agreement is unlikely, but even a small reduction in tariffs could send a positive signal to markets. Investors are watching closely, as any progress could impact futures trading when markets open.
SOURCES:
https://www.cbsnews.com/news/us-china-talks-tariffs/
https://www.thenews.com.pk/latest/1310457-us-china-talks-to-resume-today-as-tariff-tensions-persist