Top US and China trade envoys to hold crucial meeting in Geneva amid trade war
Listen to article
Top US officials are set to meet with a senior Chinese delegation in Geneva this weekend, marking the highest-level bilateral talks since President Donald Trump imposed sweeping tariffs that sparked an ongoing trade war between the two global powers.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the delegation, with China's Vice Premier He Lifeng representing Beijing, both sides confirmed on Tuesday.
The meeting, announced amid growing concern over inflation and disrupted supply chains, is viewed as a possible first step toward easing tensions.
The White House said the discussions would aim to address 'longstanding trade imbalances' and come as tariffs between the two countries have risen to historic levels — 145% for US duties on Chinese goods, and 125% for Chinese tariffs on American products.
Bessent described the current situation as 'isn't sustainable ... especially on the Chinese side.' He added that 'the equivalent of an embargo. We don't want to decouple. What we want is fair trade.'
Trump previously asserted that the US and China were engaged in talks to reduce tariffs, a claim China denied, insisting that any dialogue could only begin if Trump first eased the steep duties he had imposed.
China's Ministry of Commerce said the meeting was agreed upon after 'The Chinese side carefully evaluated the information from the US side and decided to agree to have contact with the US side after fully considering global expectations, Chinese interests and calls from US businesses and consumers,' said a ministry spokesperson.
However, it warned Beijing would not compromise its 'principles or global equity' in pursuit of any agreement.
The talks come as American businesses face rising costs and uncertainty. Many US firms have begun delaying investments and cancelling orders from China.
Economists have warned that the tariffs are likely to be passed onto consumers, contributing to price hikes in food, housing, and vehicles — a growing burden as recession risks mount.
Wendy Cutler, a former US trade official and now vice president at the Asia Society Policy Institute, said the Geneva meeting was a 'welcome development' but cautioned against expecting quick results.
'As the first face to face meeting between senior US and Chinese officials since Trump's inauguration, it's an important opportunity to have initial talks on unwinding some tariffs, mapping out a path forward, as well as raising concerns,' Cutler said.
'We should not expect any quick victories — this will be a process that will take time.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Wall Street Week Ahead: Jobs data, tax bill, trade on tap for rebounding US stocks
NEW YORK: Key US economic data, developments with federal tax-and-spending legislation and twists and turns on trade all are poised to influence equities in the coming week, with the US market closing in on record highs. The S&P 500 was set for a weekly gain with the benchmark index on Thursday ending about 4% from its February all-time high. Investors at the end of the week were grappling with implications from legal rulings involving efforts to block most of President Donald Trump's tariffs. Trump's trade war has whipsawed global markets for weeks on concerns about economic fallout. The coming week also brings a raft of economic and labor market data, headlined by the monthly US employment report out on Friday. 'Now that we're back up here not all that far from the record high, I think the hard data needs to hold in better than the market expects to really advance from here,' said Scott Wren, senior global market strategist at the Wells Fargo Investment Institute. The employment report for May is expected to show an increase of 130,000 jobs, according to a Reuters poll of economists, which would be a step down from growth of 177,000 the prior month. Investors have been eager to learn how Trump's tariffs may be rippling through the economy, especially in the wake of his April 2 'Liberation Day' announcement of sweeping levies on imports. The May data represents a full month of 'how businesses have been handling some of the tariff uncertainty and some of the pressures in the market,' said Anthony Saglimbene, chief market strategist at Ameriprise Financial. Still, an overly strong employment report, such as growth of over 200,000 jobs, might be viewed warily by the market because it could delay interest rate cuts by the Federal Reserve, said Eric Kuby, chief investment officer at North Star Investment Management Corp. Investors have reduced bets in recent weeks on the amount of expected Fed easing this year, with about two rate cuts priced in by December, according to LSEG data. Minutes of their latest meeting released this week showed Fed officials acknowledged they could face 'difficult tradeoffs' in coming months with rising inflation alongside rising unemployment. Fiscal legislation in Washington will also be in focus. The Senate will start considering a tax-and-spending bill passed earlier this month by the House of Representatives. Trump said this week he plans to negotiate aspects of the 'big, beautiful' tax bill, a day after billionaire Elon Musk said the bill detracts from efforts to reduce the US budget deficit. The bill, which will add an estimated $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade, has focused attention on the impact of increasing deficits on the Treasury market. Rising bond yields have pressured stocks in recent weeks. The shifting tariff backdrop also appeared likely to influence asset prices. Equities rebounded in recent weeks after Trump eased his harshest tariffs, but the situation remains in flux as Washington negotiates with trading partners. On Thursday, for instance, stocks rose early the session after a US trade court blocked many of Trump's tariffs, but gains faded during the session. Later, a federal appeals court reinstated the tariffs, further muddying the backdrop. 'There's initial excitement and then the reality set in that this is just another step in this process and it really hasn't clarified very much,' Kuby said.
Business Recorder
4 hours ago
- Business Recorder
Most Gulf markets in red on US tariff uncertainty
DUBAI: Most stock markets in the Gulf ended lower on Sunday as US President Donald Trump's comments accusing China of breaking a bilateral trade deal added to uncertainty over tariffs. Trump has also announced plans to double worldwide steel and aluminium tariffs to 50%. Later said he would speak to his Chinese counterpart to 'hopefully' work out differences. A federal appeals court last week temporarily reinstated the most sweeping of Trump's tariffs, a day after a US trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. Saudi Arabia's benchmark index dropped 1.5%, weighed down by a 2.2% slide in Al Rajhi Bank and a 0.9% decrease in Saudi National Bank. Elsewhere, oil company Saudi Aramco eased 0.7%. Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil group may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week. In Qatar, the index gained 0.4%, ending a five-session losing streak, helped by a 1.1% rise in the Gulf's biggest lender Qatar National Bank.
Business Recorder
4 hours ago
- Business Recorder
London stocks gain despite lingering US tariff uncertainty
LONDON: British equities ended higher on Friday, but trimmed initial gains after US President Donald Trump accused China of violating a tariff agreement, while investors assessed US consumer spending data. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!,' Trump said on his Truth Social platform. The blue-chip FTSE 100 gained 0.6% and the midcap FTSE 250 rose 0.1%. Despite continued concerns over Trump's erratic tariffs, the benchmark index posted its best month in four. The mid-cap index posted its best month since July 2024. Investors in Britain remained optimistic over easing trade tensions with Washington after the US and UK announced a limited bilateral trade agreement earlier this month.
