US-China tariff negotiations set for Sunday, as confirmed by an official to The Associated Press.
Last-Minute Tariff Talks: U.S. and China Negotiate in Geneva
By DIDI TANG, PAUL WISEMAN, and JAMEY KEATEN
In a bid to save the global economy from the jaws of a trade war, high-ranking delegates from the U.S. and China held secretive negotiations in Geneva, Switzerland. The marathon talks, lasting over ten hours, stretched well into the night. With no immediate word on progress, both parties have agreed to reconvene on Sunday.
Senior officials from both sides opted to remain anonymous, given the delicate nature of these negotiations. The discussions were conducted shrouded in secrecy, with neither side divulging any details to the press on their way out. However, diplomats from both the U.S. and China confirmed the meetings did indeed occur.
The venue for the intense negotiations was the 18th-century "Villa Saladin" overlooking Lake Geneva. This stately mansion, bequeathed to the Swiss state in 1973, played host to the crucial discussions aimed at calming trade tensions between two of the world's biggest economies.
Possible resolutions include scaling back the disastrous tariffs that have disrupted trade between the two nations. In recent months, tensions have escalated significantly, as the U.S. raised tariffs on Chinese goods to a combined 145%, and Beijing responded by slapping American imports with a 125% levy. This trade standoff, worth over $660 billion, has sent shockwaves through global markets.
U.S. President Donald Trump tweeted on Friday that it might be wise to decrease U.S. tariffs on China, stating, "80% Tariff seems right! Up to Scott." It is unclear whether this concession will materialize in the ongoing negotiations.
Although prospects for a significant breakthrough may seem slim, analysts remain hopeful that both countries will agree to reduce the punishing tariffs, thus providing relief to world financial markets and companies that rely heavily on U.S.-China trade.
At the recent meeting, American representatives included Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The Chinese delegation was led by Vice Premier He Lifeng. This marks the first time these two top officials have met. Although political commentators are skeptical about major results, they agree that even minimal progress would send a positive signal.
This meeting in Geneva follows a longstanding dispute between the two powers, which dates back to Trump's first term in the White House. The U.S. has accused China of employing unfair trade practices to gain an advantage in advanced technologies, including quantum computing, driverless cars, and the theft of intellectual property.
Previously, efforts to broker a deal between the U.S. and China culminated in a so-called Phase One agreement in January 2020. Nevertheless, the U.S. did not meet its promise to increase purchases of Chinese goods, arguing that the consequences of the COVID-19 pandemic disrupted the global economy.
As the fight over China's tech policy unfolds, other issues loom large. For example, America's massive trade deficit with China, which reached a staggering $263 billion in 2021, is a major point of contention.
In related news, Bessent and Greer also discussed trade with Swiss President Karin Keller-Sutter on Friday. Recently, Trump had suspended plans to impose hefty 31% tariffs on Swiss goods but has hinted that these penalties could be reapplied. Swiss industries such as watches, coffee capsules, cheese, and chocolate are particularly vulnerable to increased tariffs. Despite this precarious situation, the Swiss government has, for now, refrained from implementing countermeasures.
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- The global economy stands at a critical juncture, as U.S. and Chinese delegates strive to save it from a trade war in secretive negotiations in Geneva.
- Amidst the clandestine talks, both parties have agreed to meet again on Sunday amidst no immediate word on progress.
- The venue for the crucial talks was the 18th-century Villa Saladin, a stately mansion overlooking Lake Geneva, which played host to diplomats from both countries.
- One possible resolution is scaling back the harmful tariffs that have adversely affected the economies of both nations, especially after the U.S. raised tariffs on Chinese goods to 145% and China responded with a 125% levie.
- Trump suggested a potential tariff decrease and called for Treasury Secretary Scott Bessent to consider an 80% tariff, but the outcome remains uncertain for the ongoing negotiations.
- Analysts are hopeful that both countries will ease tariffs to provide relief to the world financial markets and businesses reliant on U.S.-China trade, despite the slim chances of a significant breakthrough.
- In addition to discussing tariffs with Chinese representatives, Bessent and Greer also met with Swiss President Karin Keller-Sutter to discuss trade, particularly present tariffs on Swiss goods like watches, coffee capsules, cheese, and chocolate.
