After weeks of posturing, the U.S. and China are finally be set to meet, paving the way for a potential de-escalation to a brewing
trade war
between the world’s two largest economies.
According to U.S. government statements, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will travel to Switzerland on Thursday, where they are scheduled to meet Chinese Vice Premier He Lifeng, Beijing’s lead economic representative. The meeting will take place between May 9 and 12.
China’s Ministry of Foreign Affairs also
confirmed
He’s travel to Switzerland, where he will also meet Swiss officials.
Last Friday, China’s commerce ministry
said
it was “evaluating” an offer from Washington to start talks, and noted that senior U.S. officials had repeatedly expressed their willingness to start trade negotiations with Beijing. U.S. President Donald Trump
claimed
in late April that he had spoken to Chinese President Xi Jinping about tariffs, but declined to give any specifics.
The planned meeting in Switzerland marks the initial public pledge to initiate trade talks since President Trump initially introduced tariffs on China back in February.
The trade tensions between the U.S. and China have resulted in dramatically increased tariffs. At present, China levies a 125% duty on American products, whereas the U.S. applies a 145% tax on Chinese imports. Nevertheless, each government has established broad exceptions for items such as medications, chips, and electronic devices.
Despite reports suggesting potential easing tensions between the U.S. and China, Asian markets showed minimal movement. The Hang Seng Index in Hong Kong rose slightly by 0.2%, whereas the mainland China’s CSI 300 increased approximately 0.6%. This was noted at 4:00 PM local time in Hong Kong. Meanwhile, U.S. futures mirrored this subdued optimism; Dow Jones Futures gained about 0.42%, and S&P futures climbed by roughly 0.43%.
Nevertheless, de-escalation might bring positive news for the planet’s two biggest economic powers as President Trump’s trade conflict starts to take its toll.
Data from late April have already revealed
drop
The Port of Los Angeles’ Executive Director, Gene Seroka, recently discussed imports from China into the U.S.
warned
Retailers might soon be left with just five weeks’ worth of complete inventory. Reduced stock levels could lead to increased pricing and disruptions in the supply chain.
China
announced
key policy changes on Wednesday, including rate cuts, to bolster its economy.
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