In what could be a major development for the ongoing geopolitical tension between the nations, the US and China are currently holding trade talks in Switzerland. Indeed, the Swiss President, Karin Keller-Sutter, confirmed the meeting that has been expected to take place for much of the week.
The two sides are embroiled in a standoff that could quickly escalate into a trade war. Following the initial implementation of the United States ‘Liberation Day’ tariff plan, continued reciprocal import duty increases had been a constant. Yet, the US and UK had come to terms on a notable trade deal this week, leaving many optimistic.
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US and China Convene at Negotiating Table in Key Switzerland Meeting
For much of the last month, a brewing trade war between the US and China has captured the worry of all nations. Indeed, it began with the United States’ initial sweeping tariffs on all countries. Then, after China’s reciprocal action, they increased their import duties to heights of 245%.
The tension had continued to boil over, reaching a fever pitch. Yet, there may be hope for a resolution looming. Specifically, both the US and China are set to hold trade talks in Switzerland this week, the countries’ presidents have confirmed. Moreover, the meeting between the two largest economies in the world could be massively important for their relational future.
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According to a CNBC report, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to be there. Moreover, they will meet with China’s lead economic representative and heard premier, He Lifeng. Additionally, the discussions are set to take place on Saturday.
Experts have noted that the meeting is unlikely to form a resolution. The terms will likely become complex, with a comprehensive deal required to undo much of the tension that has been present since early April. However, it is an important start. Subsequently, they do expect a partial rollback of tariffs to be the beginning of talks.
Altogether, it is clear that both sides are committed to de-escalation. The presence of a trade war is not good for either economy. Since the tariff scuffle took place, the US economy has contracted for the first time in years. Now, there are worries that a recession could be looming.