The United States and China are set to hold crucial talks in Geneva this weekend to ease tensions in a trade war that has rocked the global economy. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet with China's chief economist, He Lifeng, to discuss possible tariff cuts and key issues such as export controls and import policy.
The talks come as tensions have escalated with tariffs of more than 100% on goods between the world's two largest economies, disrupting supply chains and raising concerns about global growth. Trump has also extended the tariffs to other countries, prompting retaliation from China and the European Union. China had previously refused to negotiate as long as the US tariffs were not withdrawn, but has now indicated a willingness to return to the negotiating table.
Meanwhile, China's central bank has announced fresh monetary stimulus, including interest rate cuts and liquidity injections into the banking system, in an effort to cushion the economic impact of the US tariffs. The move is seen as a message to Washington that Beijing is ready to negotiate and is not desperate.
Trump is in talks with 17 other major trading partners and may announce several deals soon. However, his tariff policy has caused confusion, as while it was intended to reduce the trade deficit, it has actually led to a surge in imports and a widening of the overall US deficit.
However, the impact of the tariffs on China is clearly visible as the US-China trade deficit has shrunk significantly. Attention is now focused on Geneva, which could be a key arena for determining whether this trade conflict will end or continue to worsen. The world is waiting to see whether these talks will produce an ‘economic truce’ or just another rhetorical episode.
