Unyielding Trade Talks: A Battle of Tariffs Between Giants USA and China
U.S. and China maintain dialogue over customs protocols
In a significant move, high-ranking delegations from the USA and China have convened for a series of discussions aimed at resolving their deep-seated trade conflict. The eight-hour-long meeting on Saturday in Geneva, with US Treasury Secretary Bessent, US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng as key participants, will continue on Sunday.
The global economy hangs in the balance, as this intercontinental tussle could potentially reshape the future of global commerce. The ongoing trade dispute, instigated by President Trump, has sent shockwaves around the world, with stock markets reeling from the instability.
A Tug of War on Tariffs: Background and Stakes
The Geneva meeting marks the first such encounter since the trade tensions escalated between the two economic titans. The high-powered discussions were held in private at the Swiss UN ambassador's residence on Lake Geneva.
While the USA concluded a bilateral trade agreement with the UK last week, the one with China assumes utmost importance due to the colossal volume of trade and its far-reaching implications for the world economy. As of now, both countries have imposed tariffs surpassing 100% on each other's goods. Additionally, China has curbed the export of rare earths crucial for electronic mobility. However, Trump recently declared some exemptions to import tariffs on specific electronic components relied upon by American companies.
Indications of flexibility from Trump emerged on Friday, as he suggested that tariffs of 80% on Chinese goods might be appropriate, compared to the current 145%. Yet, spokeswoman Karoline Leavitt underlined that Beijing must reciprocate with concessions, as the USA cannot unilaterally lower tariffs.
China has consistently maintained that the USA must rescind its tariffs first before any meaningful progress can be made. Chinese economist Xu Bin opined that the Geneva meeting is primarily symbolic, demonstrating that both sides are actively engaging in discussions. China is the only nation to have retaliated with counter-tariffs against Trump's avalanche of protective tariffs. Before the meeting, US Treasury Secretary Bessent stated that the main focus would be on "de-escalation" rather than brokering a comprehensive trade deal. Bessent did not comment as he exited the negotiating venue in the evening.
Sun Yun, director of the China program at the Stimson Center, underscores the worth of even minor adjustments in tariff rates. Yet, he emphasizes that what's crucial is translating these token gestures into concrete action. The expected outcomes of these critical negotiations are eagerly anticipated by the world community.
Sources: ntv.de, mau/rts/AFP
- Scott Bessent
- Donald Trump
- Tariffs
- Trade conflicts
- China
- USA
- Despite the ongoing trade conflicts between the USA and China, US Treasury Secretary Scott Bessent suggested that the main focus of the Geneva meeting would be on "de-escalation" rather than brokering a comprehensive trade deal.
- The high-ranking delegations from the USA and China, including US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng, have been discussing the escalating trade tensions that could potentially reshape global commerce.
- The ongoing trade dispute, initiated by President Trump, has led to the imposition of tariffs exceeding 100% on each other's goods, with China also curbing the export of rare earths essential for electromobility.
- Trump recently declared some exemptions to import tariffs on specific electronic components relied upon by American companies, indicating a slight flexibilty in his approach.
- However, China has consistently maintained that the USA must rescind its tariffs first before any meaningful progress can be made, as spokeswoman Karoline Leavitt emphasized that the USA cannot unilaterally lower tariffs.
