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Washington and Beijing are set to engage in their first trade talks since US President Donald Trump initiated a trade war against China. This move has caused turmoil in financial markets and raised concerns about supply chains.
Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will be meeting their Chinese counterparts in Geneva this week. China has announced that Vice-Premier He Lifeng, its top economy official, will lead their delegation.
This meeting marks the first high-level interaction between the two sides since Vice-President Han Zheng attended Trump’s inauguration in January.
“I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the United States,” said Bessent, who is scheduled to fly to Switzerland on Thursday.
This meeting signifies the first concrete effort to address the ongoing trade war. Washington has imposed a 145% tariff on imports from China, while Beijing has retaliated with a 125% tariff on American goods.
This development brings a glimmer of hope to businesses that have been grappling with the escalating tariffs imposed by both countries. It comes after conflicting statements from Trump’s team regarding ongoing negotiations between the two nations.
The standoff between Washington and Beijing has been prolonged. While Trump has expressed a desire to engage in direct talks with Chinese President Xi Jinping, China has made it clear that a leader-level call to initiate negotiations is not on the table.
Previously, Beijing had insisted that the US must reduce tariffs as a prerequisite for negotiations. However, last week, state media hinted at a potential willingness to engage in talks with Washington.
During a congressional hearing earlier this week, Bessent informed lawmakers that despite the Trump administration engaging in negotiations with 17 out of its 18 major trading partners, no trade talks had been held with Beijing.
The US has been actively pursuing discussions with various countries to establish more permanent trade agreements. However, there remains uncertainty surrounding the extent to which the Trump administration is willing to lower tariffs and which sectors are open for negotiation.
Additionally, the Trump administration has hinted at the possibility of imposing tariffs on key sectors that it deems critical. Recent national security probes have been launched, which could result in tariffs on chips, consumer electronics, lumber, copper, pharmaceuticals, and essential minerals. Trump has even threatened to impose tariffs on foreign motion pictures.
As the trade talks between Washington and Beijing unfold, the global economic landscape hangs in the balance, with stakeholders eagerly awaiting the outcome of these crucial negotiations.
