US President Donald Trump declared a significant breakthrough in trade negotiations with China following a meeting in Geneva amidst rising tensions and a tariff war.
Discussions in Geneva
Over the weekend, a meeting took place in Geneva between US Trade Representative Robert Lighthizer and his Chinese counterpart Liu He. A thaw in relations has been made possible after high tariffs were imposed on goods, leading to retaliatory measures from China. Trump described the meeting as a 'total reset' in economic relations.
Possible Tariff Compromise
Though Trump had previously insisted he would not reduce tariffs without major concessions from China, he hinted at the possibility of compromise. Reports indicated discussions of tariffs between 50% and 60%, with some sectors possibly seeing rates as low as 34%. Investors remain cautious, yet there are hopes for improved circumstances.
Future Negotiation Steps
Talks are set to continue in the coming days. Key topics include intellectual property and easing access for American goods in Chinese markets. Both sides are expected to aim for a stable trade agreement, allowing businesses to plan for the future. Many consider the progress made in Geneva as promising after a prolonged period of tension.
Imminent discussions and potential compromise could change the dynamics of US-China trade relations, but experts caution about the uncertainty of the final outcome.
