Over the weekend, US and Chinese officials met in Geneva to resume discussions on trade issues. These talks occur against a backdrop of rising tariffs and economic instability.
Trade Tensions Between US and China
The trade war between the US and China continues to escalate. President Trump raised tariffs on Chinese goods to 145%, to which China retaliated with their own tariffs of 125%. Both nations are feeling the effects, with manufacturing in China slowing down and US supply chains experiencing strain.
Geneva Talks: Expectations vs. Reality
The negotiations took place in an elegant setting at a Swiss villa overlooking Lake Geneva; however, the mood was far from optimistic. Trump hinted at potential tariff reductions, but his team quickly refuted the statement, and progress remains elusive.
Economic Consequences Without a Deal
The US economy is already feeling the pressure from the trade war. GDP shrank this year for the first time since 2022, with inflation on the rise. Investors are growing anxious about a possible recession, and Goldman Sachs has adjusted its GDP growth forecast for 2025 down to 0.5%.
The US-China negotiations continue, but progress remains unclear. The lack of a trade deal could worsen the economic positions of both countries and lead to further deterioration in the global economy.
