🇺🇸🇨🇳 U.S.–China Trade Talks Yield 'Substantial Progress'
Over the weekend, U.S. and Chinese officials convened in Geneva for two days of trade negotiations, marking the first face-to-face talks since the escalation of tariffs earlier this year. U.S. Treasury Secretary Scott Bessent described the discussions as yielding “substantial progress,” though specific details remain undisclosed. A joint statement is anticipated later today.
President Trump characterized the outcome as a potential “total reset” in trade relations, following the imposition of steep tariffs—145% by the U.S. and 125% by China—that have significantly disrupted bilateral trade. Chinese Vice Premier He Lifeng emphasized China's readiness for further dialogue but reiterated that China would firmly oppose any measures compromising its core principles.
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📉 WTO Warns of Global Trade Decline
The World Trade Organization (WTO) has forecasted a 0.2% decline in global merchandise trade for 2025, with North American exports expected to drop by 12.6%. In a worst-case scenario, global trade could contract by up to 1.5% if trade tensions escalate further. WTO Director-General Ngozi Okonjo-Iweala highlighted that ongoing uncertainty poses a significant risk to global growth, particularly affecting the most vulnerable economies.
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📈 Market Reactions and Currency Movements
Global markets have responded positively to the news of U.S.–China trade talks. European shares rose, with the Euro STOXX 50 up by 1.54%. The U.S. dollar strengthened against the yen and the Swiss franc, while the Chinese yuan also appreciated, reflecting investor optimism about a potential easing of trade tensions.