Geneva meeting meets China in first sign of thaw in trade war: U.S.-China trade talks are expected to take place in late April
The United States and China will hold their first face-to-face meeting in Switzerland later this week, signaling a potential thaw in the trade tensions between the world’s two most populous countries.
The Treasury Secretary and the US Trade Representative will meet Beijing’s economic representative, possibly paving the way for broader trade talks.
President Trump placed what he called reciprocal tariffs on China and many other countries in early April. When China retaliated with similar duties, Trump responded with higher tariffs. At the moment, Chinese goods into the U.S. face tariffs of 145%, and U.S. goods into China are subject to 125% tariffs.
“China and the U.S. must move on” according to a chief economist at French bank Natixis. “I think both parties are keen to negotiate.”
“For the negotiations to yield substantial results, the U.S. must adopt a proper attitude,” said an editorial on a Chinese news site, which many perspectives align with Chinese state interests.
The U.S. will remove the tariffs on Chinese goods but retain 20% duties, so a trade deal will be struck soon, according to Garcia-Herrero.
“The deal will be announced as a minor thing because they have convinced their constituencies that the other side is evil,” Garcia-Herrero said. “So they cannot really change that mantra now.”
Source: U.S. and Chinese officials will meet in Geneva in first sign of thaw in trade war
Trade War in China: Implications for the Central Bank, Financial Markets, and Wall-to-Delta Majority of Chinese Consumer Prices
A spokesperson for China’s commerce ministry said on Wednesday that China’s door remains “open for negotiation” but that it will not “sacrifice its principles” for just any agreement.
President Trump did not blink in the face of large sell-off in U.S. government bond markets and broader financial market turbulence. If consumer prices rise because of a shortage of goods President Trump may have to lower or cut tariffs.
The Chinese central bank and financial regulators took their biggest policy steps yet on Wednesday in order to shield the economy from the trade war.
The international economic and trade order has been dealt a severe blow by the Trump administration’s tariffs, triggered significant turbulence in international financial markets, and placed considerable pressure on the domestic capital market, according to the China stock regulator at a press conference.
The Chinese economy is slowing but they have the upper hand, said Scott Kennedy, a senior adviser at the Center for Strategic and International Studies. If the Trump administration were to stonewall them, they could end up playing a key role in bringing the economy to a halt.