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US and China Set for First High-Level Talks Since Trade War Escalation

U.S. officials will meet with China’s vice premier this weekend, marking the first significant talks amid heightened trade tensions.


Overview

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In a significant development, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with Chinese Vice Premier He Lifeng in Switzerland this weekend. This marks the first major dialogue since the trade war escalated sharply, with U.S. tariffs now at 145% and 125% from China. Bessent emphasized that while severe tariffs create an unsustainable economic environment, current discussions will focus on de-escalation rather than a comprehensive trade deal. Chinese officials have expressed a conditional willingness to negotiate, balancing their principles with external pressures. The outcome of these talks may impact global economic stability.

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The planned meetings between U.S. and Chinese officials represent a minor thaw in relations rather than a substantial progression towards a trade deal, as both sides acknowledge barriers and mistrust remain.

While the U.S. is pursuing negotiations, there are concerns that the high tariffs will remain a significant obstacle and that genuine concessions may not be made.

Economists warn that the current state of the trade war is likely to lead to increased prices for consumers and potential recession risks, highlighting the downside yet to come from these negotiations.

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