Trade Negotiations Kick Off to Ease US-China Economic Tensions
US and Chinese officials are gearing up for critical trade talks in Switzerland on May 9-10, 2025, aiming to de-escalate a heated trade war between the world’s two largest economies. The meeting will see US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng take the lead. This comes as tariffs have soared, with the US imposing up to 145% on Chinese goods and China retaliating with 125% on American imports.
The talks follow a period of strategic posturing, where both nations hesitated to initiate dialogue, a dynamic described as “constructive ambiguity” by the BBC on May 2, 2025. Leaders Donald Trump and Xi Jinping have been cautious, aiming to avoid appearing weak domestically. This meeting marks the first high-level interaction since Chinese Vice-President Han Zheng attended Trump’s inauguration in January 2025.
Global trade experts, however, remain skeptical about immediate results. The BBC reports that negotiations could stretch over months, if not a year, due to deeply entrenched positions. Both sides are under pressure to address unsustainable tariffs, with Bessent emphasizing de-escalation over a comprehensive deal, as stated in a Fox News interview. Meanwhile, China’s commerce ministry insists the US must acknowledge the negative impacts of its unilateral tariff measures.
Financial markets have reacted with cautious optimism. While Asia-Pacific markets showed mixed responses, US stock futures rose, signaling investor hope for a potential thaw in tensions. Still, the trade war’s ripple effects continue to unsettle global trade, with both nations and the world watching closely for any signs of progress.
Source: MetroTvOnline