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US and China set for trade talks in Switzerland amid escalating tariff dispute

Wednesday 07 May 2025 - 10:03
US and China set for trade talks in Switzerland amid escalating tariff dispute
By: Zahouani Ilham
Zoom

The United States and China are scheduled to meet in Switzerland this week to begin formal trade discussions, marking the first official talks between the two countries since the onset of a new wave of tariffs. The talks come at a time of heightened economic tension following US President Donald Trump's imposition of a 145 percent tariff on Chinese imports, which led to a swift response from Beijing with a 125 percent duty on US goods.

Representing the United States will be Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while Chinese Vice Premier He Lifeng will lead Beijing’s delegation, according to statements from both governments.

Global markets and business leaders are closely watching for progress, fearing that a prolonged trade conflict could damage the global economy. Last month, the International Monetary Fund cut its 2025 global growth forecast from 3.3 percent to 2.8 percent, citing concerns about trade instability.

In the US, economic analysts are increasingly wary of a potential recession, with JP Morgan Research placing the risk at 60 percent. The US economy already saw a 0.3 percent contraction in the first quarter, even before most of the new tariffs were implemented.

In an interview with Fox News, Secretary Bessent emphasized that both nations share an interest in easing tensions, stating that the goal is fair trade not economic separation. He clarified that the focus of this initial round of dialogue will be on reducing tensions rather than negotiating a comprehensive trade agreement.

China’s Ministry of Commerce echoed a tone of cautious optimism, calling for talks to proceed on the basis of mutual respect and equality. A spokesperson urged the US to recognize the harmful effects of its unilateral trade actions and to align with global trade norms and the broader international consensus

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