Trade Wars: US-China Trade Talks Make Progress, But Details Remain Scarce
President Donald Trump announced on Saturday night that “great progress” had been made during weekend trade negotiations with China in Geneva, Switzerland. The talks, which lasted over 10 hours, involved US officials, including Treasury Secretary Scott Bessent, and a Chinese delegation. While Trump described the agreement as “a total reset negotiated in a friendly, but constructive, manner,” no major breakthrough was announced.
Key Takeaways from the Trade Talks:
– Tariffs: The US imposed a 145% tariff on Chinese goods in April, prompting China to raise tariffs on US goods to 125%.
– Trade Deficit: Trump aims to address the nation’s record $1.2 trillion trade deficit from 2024 with “fair” duties, potentially encouraging the return of US manufacturing jobs.
– Job Impact: Bessent estimates that tariffs could cost China up to 10 million jobs, making Chinese tariffs unsustainable. Even with a drop in tariffs, China could still lose 5 million jobs.
– Future Negotiations: Talks are scheduled to continue on Sunday, with the US pushing for China to open up to American business.
Trump’s Stance on Tariffs
Trump remains committed to a 10% baseline tariff, despite recent trade deal announcements with other countries. He believes this approach will benefit both the US and China, promoting a more balanced trade relationship
