The US-China trade war seems to be easing slightly as high-stakes tariff talks commenced in Geneva, Switzerland. Senior American and Chinese officials, including US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, met with Chinese Vice Premier He Lifeng to discuss de-escalating tensions.
*Key Developments:*
- *Talks' Objective*: The primary focus is on reducing the tit-for-tat tariffs imposed by both countries, which have brought bilateral trade to a virtual standstill.
- *US Stance*: The US won't ease tariffs unilaterally; China needs to make concessions as well, according to US President Donald Trump's press secretary.
- *China's Position*: Beijing insists the US must lift its levies before any concessions are discussed.
- *Market Reaction*: Investors are hopeful for progress, but expect volatility to continue. Some see this as a positive step toward de-escalation, while others doubt a breakthrough ¹ ² ³.
*Potential Outcomes:*
- A possible 90-day waiver on tariffs, similar to those given to other countries, could be discussed.
- A roadmap for future discussions might emerge, potentially lowering tensions.
- However, analysts expect a prolonged negotiation process due to deep-seated distrust and complex issues ².
