Negotiations of the US and China. It's about trade and duties

“Significant progress” in negotiations with China was announced on Sunday by US representatives after two -day talks in Switzerland. They concerned the issue of customs and trade war between these countries. Delegations were presided over by the American Secretary of the Treasury and the Chinese Deputy Prime Minister. The details of the arrangements are to be given on Monday.

The United States and China made “significant progress” during two-day trade and interviews in Switzerland – The Secretary of the US Treasury Scott Bessent and the US representative for trade Jamieson Greer assessed on Sunday.

“Productive conversations” of the USA and China about trade

– It is important to appreciate how quickly we were able to reach an agreement, which reflects that the differences may not be as great as it seemed – Greer told journalists after The second day of talks in Geneva. Delegations were presided over by Bessent and Deputy Prime Minister Chin He Lifeng.

Bessent and Greer have announced that they will give more details the next day. No information about the possible reduction in duties has been provided yet. US representatives did not answer journalists' questions. Reuters emphasizes, however, that the head of the Treasury Department said earlier that these duties are synonymous with the trading embargo between the two largest economies in the world and should be “softened”.

Bessent emphasized that the US President is fully aware of the results of “productive conversations” with the deputy prime minister of China and two government ministers in Beijing.

According to Reuters, Deputy Prime Minister Chin He Lifeng described the meeting as “honest”. He assessed them as an important first step.

Customs War of the USA-China

It was the first direct meeting of Bessenta and HE since the commencement of the trade war. As a result, the President increases several times Donald Trump customs duties on products imported from China and the following Chinese retorts, American duties currently reach 145 percent, and duties imposed by Beijing on exports from the USA – 125 percent.

Washington is trying to reduce its $ 295 billion deficit in trade with Beijing and convince China to modify the economic model, which would include on Beijing increases internal consumption. China is opposed to external interference. They expect Washington to lower the duties. They also hope that the US will clearly define goods that they would like to export to China. Finally, they demand that the US treat them as an equal partner.

Bloomberg noticed that traders warned Trump's administration, that the result of persistent high tariffs would be deficiencies on the market and shocks in the supply chain.

On Friday, Trump suggested that 80 percent seemed to him at the right customs rate, which is a very high level.

Meeting on neutral ground

Negotiating teams met in the fenced villa of the ambassador UNwhich has its own private park with a view of the Geneva Lake in the Green Cologna District.

Switzerland was chosen as a meeting place after the efforts of Swiss politicians during recent visits to China and the United States.

They have a contract up

According to Reuters, investors do not expect a quick and simple solution to the problem of customs duties, but they accepted Sunday reports with satisfaction. “This is a step in the right direction, showing that both sides are interested in achieving a constructive solution and developing better trade relations,” Eric told reporters CubaInvestment Director at North Star Investment Management Corp. in Chicago.

The USA and China have a trade agreement up his sleeve, which was signed at the end of Trump's first term in 2020 – Bloomberg's agency reminded. As part of that agreement, Beijing has undertaken to buy additional goods and services from the United States worth over $ 200 billion and the opening of his market for the American sector of agriculture and financial services.

Trump repeatedly criticized Biden's administration, claiming that he did not enforce the contract after China did not keep their promises.