Description: The two largest global economies met on neutral grounds in Geneva, Switzerland where they discussed lowering tensions on the global markets and bringing of the trade war to an end. The initial meeting represented a significant breakthrough in bilateral relations as the US insisted China to abandon their export – driven economic model for a more consumer spending trade values and principles. So far, the two countries engaged in reciprocal imposition of tariffs which led the almost $600 billion bilateral trade to a standstill with the US claiming a trade deficit of $295 billion with China. Positive signals were gathered by both sides as US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer labeled the negotiations as exceedingly progressive and fast – paced. China’s Vice Premier He Lifeng alongside other representatives from the Chinese trade delegation met Bessent, Greer and the US envoy, after which the Chinese officially stated that significant and substantial progress has been made in demounting the trade pressure on the global markets. Both camps were limited in their press statements as they stated concrete results to be announced on Monday.
Impact: The US – China trade war reached its culmination and predictably started to deescalate after bilateral trade came to a grinding halt. The Geneva talks were largely expected, since both countries started having diplomatic confrontation through the media, however, the unexpected part was the positive signaling from both sides on the rapidly driven agreements. Trump’s weaponization of tariffs was rapidly uncovered to have been solely directed towards depleting China’s economic consolidation of global influence and power as the trade war is just another front where the two adversaries have continuously collided over the years. Despite the negotiations being hailed as rapidly progressive, a gradual de-escalation is expected as both sides are naturally skeptical towards one another, with tariff relief expectations to be announced in the upcoming week. Moving towards resolution, the trade war has left longstanding distrust in the global markets influenced by both countries which in the long – term would modify investment policies in critical industries which would eventually impact countries with rapidly growing economies.