After an intensive negotiation weekend in Geneva, the US government has given the prospect of an agreement in the trade conflict with China. Curiously, the trade with China could get fewer hurdles than that with partner countries.
Details should follow
Although precise content of the agreement has not yet been published, observers see a first step towards relaxing in the long -lasting trade dispute between the two business powers. US Finance Minister Scott Bessent described the talks as “productive” and quit A comprehensive press conference on Monday morning, in which further details are to be announced. US trade officer Jamieson Greer also said positively.
A result was achieved in a short time, which indicated that the differences may not have been as serious as it was assumed. Greer emphasized that the preliminary agreement was a significant step to solve a “national emergency” – a wording with which the US government describes the economic pressure as a result of punitive tariffs.
The Chinese side also spoke of a breakthrough. Vice Prime Minister He Lifeng said that the talks had brought “substantial progress” and had been agreed on the establishment of a constant consultation mechanism on trade and economic issues. Li Chengang, China’s international trade officer, announced an official statement without naming a specific date. He commented optimistically: “If the food tastes good, the time doesn’t matter.”
Massive tariffs
The negotiations took place against the background of growing global economic worries. Since President Donald Trump announced punitive tariffs of 145 percent on Chinese products, the trade conflict has escalated. Beijing reacted to US goods with its own customs increases of up to 125 percent. The result was turbulence on the financial markets and growing fears of supply bottlenecks and price increases. Especially in the tech industry, the reports are likely to lead to relief – because despite all efforts, this continues to depend heavily on the Chinese market.
The conflict ensured that the proven supply chains brought enormous price increases. The agreement could possibly even go so far that some Chinese brands like Huawei come back to the western markets. So far, it is also unclear how a deal with China will affect other US trade policy. After all, the Trump government has positioned tariffs against all kinds of states. This can now lead to the situation that the trade barriers to Canada or the EU are strictly than the opposite of China.
