As the two biggest economies of the world try to de-escalate tensions that have sparked a de facto mutual trade embargo, officials have announced that this week, trade talks between the US and China will take place in Switzerland.
The trade talks would mark Washington’s first official trade meeting since US President Donald Trump imposed a 145 percent tariff on Chinese goods, which sparked a 125 percent duty from China as a result.
Their offices announced in a statement on Tuesday that US Trade Representative Jamieson Greer and US Secretary of the Treasury Scott Bessent would be present for the US side.
Beijing will be represented by Chinese Vice Premier He Lifeng, according to a statement from the Chinese Ministry of Foreign Affairs.
Businesses and investors have been anticipating a easing of US-China tensions because they fear a protracted trade war would seriously harm the world economy.
In response to Trump’s trade wars, the International Monetary Fund cut its forecast for global growth from 3.3% to 2.8% last month.
The likelihood of the US economy entering recession this year has been raised by economists in greater numbers, with JP Morgan Research estimating it to be 60%.
The US economy experienced its first-quarter decline since early 2022, when the majority of Trump’s tariffs went into effect.
Bessent claimed that the two parties had a “shared interest” in the talks because the tariffs are currently unsustainable in an interview with Fox News following the announcement of the talks.
We oppose decoupling, “. Fair trade is what Bessent told Laura Ingraham of Fox News.
Bessent predicted that the initial discussions would be centered on “de-escalation” rather than a “big trade deal.”
He said, “We have to de-escalate before we can proceed.”
The talks should move forward according to the “basis of mutual respect, equality, consultation, and mutual benefit,” according to the Chinese Ministry of Commerce on Wednesday.
A ministry spokeswoman said, “As a Chinese saying goes, observe their words and actions.
Source: Aljazeera
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