On May 10, 2025, high-level trade negotiations between the United States and China commenced in Geneva, aiming to de-escalate a trade war that has significantly impacted global markets. The discussions, held at the Swiss ambassador’s residence in Cologny, involved U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. This marked the first formal dialogue between the two nations since the imposition of steep tariffs—145% by the U.S. and 125% by China—earlier this year.

The talks are characterized by cautious optimism, with both sides expressing a willingness to engage but maintaining firm stances on key issues. The U.S. seeks to reduce its trade deficit and encourage China to shift away from its state-driven economic model, while China demands equal treatment and a reduction in tariffs.

Investors are closely monitoring the negotiations, hoping for signs of progress that could stabilize markets. While significant breakthroughs are not anticipated in the initial rounds, even modest steps toward easing tensions are viewed positively.

The discussions are set to continue, with further meetings planned to address the complex issues underpinning the trade dispute. Both nations appear committed to finding a path forward, albeit with tempered expectations.

Source: Reuters