U.S. and China make headway in trade talks in Switzerland
After two days of talks in Switzerland, significant progress in trade negotiations between the USA and China was announced. The delegations, led by the US Treasury Secretary and the Chinese Vice Premier, announced that further details would be shared on Monday.
What do you need to know?
- Where were the talks held? The two-day negotiations took place at the UN Ambassador's villa in Switzerland.
- Who participated in the talks? US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led the delegations.
- What are the expectations? China expects the US to reduce tariffs and specify the goods they wish to export to China.
What are the details of the negotiations?
The United States and China declared "significant progress" in negotiations regarding tariffs and the trade war. The talks, held in Switzerland, aimed to ease trade tensions between the world's two largest economies.
In a discussion with journalists, a US trade representative, Jamieson Greer, said, "It’s important to understand how quickly we were able to come to an agreement, which reflects that perhaps the differences were not so large as maybe thought."
What does "significant progress" mean?
However, during the talks, no details were given about the potential reduction of tariffs, which are currently 145% on imported products from China and 125% on exports from the USA.
- This is a step in the right direction, showing that both sides are interested in coming to a constructive conclusion and develop a better trade relationship - said Eric Kuby, Chief Investment Officer at North Star Investment Management Corp.
The Chinese Vice Premier emphasised that the dialogue was conducted on equal terms and declared that as a result of the talks, the global economy would receive a "boost of stability and certainty." He stated that Beijing is ready to intensify areas of cooperation with the USA.
China's Vice Minister of Commerce, Li Chenggang, emphasised that the agreement would be in the interest of his country's development and announced that when the formal statement is published, it will contain "good news for the world."
What are the next steps?
US representatives announced that more details would be provided on Monday. - I’m happy to report that we made substantial progress between the United States and China in the very important trade talks - emphasised Scott Bessent.
China hopes for a reduction of tariffs and for the US to treat them as an equal partner.
