US, China Trade Talks Resume in Geneva, newyorktime Reports
The Geneva talks are a crucial step towards a potential deal, with both sides acknowledging that the current standoff is unsustainable. Major concessions are needed from both sides to begin negotiations, and it could take two to three years for trade to normalize. The US and China must find a way to balance their competing interests and find a mutually beneficial solution to the trade war.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will lead talks with Chinese Vice Premier He Lifeng in Switzerland from May 9-12 to address the ongoing trade war between the two nations. The trade war has had a significant impact on global trade and financial markets, with both sides imposing tariffs on each other's goods.
The US has imposed tariffs of up to 145% on Chinese goods, while China has retaliated with tariffs of 125% on US goods. The talks are seen as a de-escalation effort, with both sides aiming to reduce tensions before progressing to a larger trade deal. Global trade experts are pessimistic about the talks, expecting them to drag on for several months or even years.
The trade war has already had a significant impact on trade between the two countries, with the number of cargo ships headed from China to the US dropping by 60%. Chinese imports into the US are expected to plunge by up to 80% by the second half of the year, leading to potential shortages and price hikes. The US has experienced its first contraction in three years, while China's economy is growing at its slowest pace in 16 months.
The outcome of the meeting is being closely watched by global economists, who have predicted that the trade war would have disastrous effects on the global economy, slowing growth and reigniting inflation. A successful outcome to the talks could help to alleviate these concerns and pave the way for a larger trade deal between the two nations.