Description: The US Treasury Secretary Scott Bessent and the US Trade representative Jamieson Greer are set to meet their counterparts from China this weekend in Geneva. The information was initially disclosed by US sources who have stated they made the primary approach to discuss the tariff escalation with China, while the Chinese Trade Ministry confirmed they have agreed to meet their US counterparts after carefully considering the repercussions of the tariffs. Detailed information regarding the initial direct contact wasn’t disclosed as both sides were worried about compromising their negotiating position, however, indications of substantial de-escalation were hinted. The US currently imposes 145% tariffs on Chinese goods while China holds the 125% tariffs on US goods, moves which have considerably disrupted the global trade markets. Both camps approach the negotiations on a relatively even keel after weeks of political confrontations in the media.
Impact: The initiation of the trade talks between China and the US is most probably the result of weeks of backchannel discussions in the making. Official sources from both governments have denounced the speculations that representatives have previously set the groundwork for the meet in Geneva, however, unofficial information emerged that US Secretary of State and interim National Security Advisor, Marco Rubio had a phone call with Chinese Foreign Minister Wang Yi. The initial contact would serve as a major tool for reducing the tariff percentages and set the tone for future negotiations. Neither China nor the US is expected to make serious concessions as the meeting in Geneva would most probably serve as disclosing the red lines around bilateral trade. The meeting represents a major development in the trade war as both countries have continuously refused to make the initial approach. No changes in stock market fluctuations are expected as the absence of predetermined discussion goals indicates further turbulence.