China has expressed its willingness to discuss tariffs with the United States, signaling a potential de-escalation of trade tensions. This follows President Trump's indication of a possible agreement, raising hopes for a resolution.
A spokesperson for the Chinese Foreign Ministry, Guo Jiakun, stated that China believes there are no winners in a trade war. Chinese President Xi Jinping added that tariff wars undermine the legitimate rights of all countries. He also said that these wars damage the multilateral trade system and impact the global economic order.
Trump announced a "substantial" reduction in tariffs on Chinese goods, providing relief to global markets. He acknowledged that the current 145% tariff level is "very high" and will be lowered significantly. The markets reacted positively to this announcement.
Treasury Secretary Scott Bessent described the tariffs as a reciprocal trade embargo. White House spokesperson Karoline Leavitt mentioned the government is making progress toward a potential trade agreement with China. Investors should watch for further announcements regarding tariff reductions and potential trade deals.
The outcome of these discussions could significantly impact the global economy. A resolution would alleviate inflationary pressures and boost economic growth. Conversely, failure to reach an agreement could lead to further economic instability.